Bank of America Securities (BofA) has revised its price target on Pan American Silver (NYSE:PAAS) upward to $73 from $68, while continuing to recommend the stock as a Buy. The new target price reflects an upside potential relative to Pan American Silver’s current trading price of $61.72, which is slightly below its 52-week high of $61.88.
This update coincides with Pan American Silver’s recent announcement of preliminary production results for the fourth quarter of 2025 and its production guidance for the year 2026. BofA underscored that the company’s guidance for silver and gold output in 2026 exceeded the firm's initial projections. Additionally, unit costs were reported to be in line with or better than anticipated.
According to InvestingPro data, Pan American Silver has delivered a remarkable 187.46% price return over the last year, with expectations for continued net income growth in the current year.
In light of these developments, BofA enhanced its valuation multiple from 2.50x to 2.75x net asset value (NAV). The firm attributed this increase to an "increasingly bullish demand outlook for silver." The current multiple approaches historical highs of 3x, levels previously observed during periods of similarly strong silver demand.
BofA identified specific factors that may serve as catalysts for Pan American Silver’s stock price, including a potential rise in dividend payments or share repurchase programs. Other influences may stem from the results of the La Colorada Skarn phased development study, as well as optimization strategies at the Jacobina mine. Presently, PAAS offers a dividend yield of 0.91% and has sustained dividend payments for 16 consecutive years, with an impressive 40% dividend growth over the past twelve months.
The research firm also noted that while Pan American Silver’s production guidance is somewhat lower than consensus estimates, its unit costs and capital expenditure forecasts are notably higher. Despite these divergences, BofA views the guidance as a positive development that "removes an overhang" and supports the potential for upward share price movement.
Pan American Silver holds a "GREAT" overall financial health rating on InvestingPro. Analyst price targets range from $38 to $70, providing a broad perspective on market expectations. Investors can access Pan American Silver’s detailed Pro Research Report, including over a dozen additional ProTips, to inform their investment decisions.
Additional company disclosures reveal that Pan American Silver exceeded its 2025 silver production forecasts by achieving 22.8 million ounces, including a fourth-quarter record of 7.3 million ounces. Gold production for the year reached 742,200 ounces, consistent with annual guidance.
However, the company’s third-quarter earnings for 2025 slightly missed expectations, posting earnings per share of $0.48, compared to the estimated $0.51. Quarterly revenue was $854.6 million, just under the anticipated $860.78 million. Despite these minor shortfalls, the stock experienced positive movement, credited to ongoing strategic acquisitions and operational improvements.
In contrast, other gold and silver mining stocks, such as Barrick Mining and Agnico Eagle Mines, experienced significant declines due to a retreat in precious metal prices. These mixed financial results and divergent market responses highlight the varying dynamics presently impacting the precious metals sector.