Jefferies lowers Pan American Silver’s target amid gold price declines and rising diesel costs, expecting margin pressure in Q2.
Jefferies reduced Pan American Silver Corp. (NYSE:PAAS) price target to $53 from $54 while retaining a Buy rating. The adjustment follows a drop in gold prices from $4,700/oz to $4,200/oz since Q1, alongside higher diesel costs, which may squeeze margins in Q2.
Earlier, BofA also trimmed its PAAS target to $69 from $77, citing lower commodity price forecasts for precious and base metals. Both firms anticipate tough market conditions through autumn before a potential rebound.
Pan American Silver operates mines across Latin America and Canada, focusing on silver and gold extraction.