Canaccord and Roth repeat 'Buy' ratings on Silvercorp Metals following third quarter results
Brokers Canaccord and Roth have both repeated a ‘Buy’ on Silvercorp Metals Inc (NYSEAMERICAN:SVM) (TSE:SVM) (FRA:S9Y) following the China-focused metals miner reporting its fiscal third quarter 2021 results last week.
For the three months to end-December 2020, Silvercorp reported net income of US$8.4 million, or US$0.05 per share, compared to US$6.3 million, or US$0.04 a share, in the same period a year earlier. Revenue in the quarter came in at US$53.3 million, up from US$44.5 million in fiscal 3Q 2020. That represented a 33% increase in income and a 20% uptick in revenue for the period.
READ: Silvercorp Metals reports upswing in income and revenue in fiscal third quarter
For fiscal 2022 (to March 30,2022) the miner said it expects to process around 960,000 to 1,010,000 tonnes of ore, yielding 6.4 million to 6.7 million ounces of silver, 65.7 million to 68.9 million pounds of lead, and 26.9 million to 28.5 million pounds of zinc.
Meanwhile, on February 2 this year, Silvercorp had acquisition news, saying subsidiary New Infini Silver Inc had acquired the La Yesca silver project in Mexico.
“We believe SVM is hoping to repeat the success the company had via its investment in New Pacific (NUAG.TONeutral). We also note that this investment could provide significant upside to our valuation for SVM,” said Roth analyst Joe Reagor in a note.
Reagor also highlighted that the miner’s production guidance for fiscal 2022 had been in line with the broker’s expectations, but capital spending and operating cost guidance were both “above expectations”.
Because of that, along with the decline in precious metals in recent months, Roth cut its price target to $9 per share from $10, but repeated a ‘Buy’.
Elsewhere, Canaccord notes that it continues to “like” Silvercorp for its ‘pure-play’ silver exposure, which the broker believes commands a scarcity premium, as well as the company’s “conservative management” approach.
Given the impact of lower production in fiscal 2022 on Canaccord’s near-term estimates, the broker says it has modestly lowered the target price to C$10.50 per share from C$11 a share previously.
“Given the 29% implied return to our revised target, we reiterate our BUY rating on SVM,” said analyst Dalton Baretto.
Silvercorp shares on Monday were US$6.46 in New York, up around 4%. In Toronto, they were up 2.37% at C$8.20 each.
Contact the author at [email protected]
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/940695/canaccord-and-roth-repeat--buy--ratings-on-silvercorp-metals-following-third-quarter-results-940695.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).