TD Cowen upgraded First Majestic Silver (AG.US) to a "buy" rating, bullish on the prospects for low-cost expansion at the Gatos mine.

On Wednesday local time, TD Cowen released a research report upgrading the stock rating of First Majestic Silver (AG.US) from "Hold" to "Buy", with the core logic being the expected improvement in performance of the company and favorable macroeconomic trends. At the same time, the brokerage raised the target price from 14 Canadian dollars to 22 Canadian dollars. The market reacted strongly on that day, with the company's stock price soaring over 11% in a single day. TD Cowen analyst Wayne Ram emphasized the promising prospects of the Gatos mine in the report. He pointed out that the mine has a low-cost production advantage and has consistently performed well, with expansion projects expected to start in 2026. Ram further emphasized that new discoveries in the Santa Elena mining area and the expansion plans for the Gatos mine will collectively drive improvements in the company's fundamentals, particularly forming a strong leverage effect during silver price uptrends. In addition, the new discoveries in the Santa Elena mining area are seen as a key growth engine that is expected to maintain the strong momentum of the company's silver production. It is worth noting that the trend of silver prices resonates positively with the company's performance. Silver futures rose by 3.31% to $49.42 during Wednesday trading, further supporting expectations for the company's profit improvement. Despite an overall Wall Street rating of "Buy", Seeking Alpha analysts and quantitative models both give a "Hold" rating, creating a rating divergence. From a valuation perspective, while the stock receives an A+ growth rating, the valuation sub-item receives a D-, lowering the overall score. Looking back at the annual performance, First Majestic Silver's stock price has risen by over 147% year-to-date, while the S&P 500 index has risen by 14.16% during the same period.