Analysts Raise Pan American Silver (PAAS) Price Targets

Pan American Silver Corp. (NYSE:PAAS) is one of the 13 Best Gold Mining Companies to Invest In Now. On December 10, RBC Capital increased its price target on Pan American Silver Corp. (NYSE:PAAS) from $45 to $55 and reiterated a Buy rating.

Earlier, on December 1, BofA Securities analyst Lawson Winder also increased the firm’s price target on Pan American Silver Corp. (NYSE:PAAS) from $46 to $51 and maintained a Buy rating. The research firm expects gold prices to rise sharply over the next year, forecasting the metal could reach $5,000 per ounce in 2026. It believes that many of the macro factors that are driving prices are still in place.

BofA Securities pointed out that “if gold matched the 2000s bull cycle, $7,000/oz could be upside.” Michael Hartnett, BofA’s investment strategist, believes that gold is a “top trade for 2026” with a projected 10% return.

In this context, the research firm reviewed which North American mining companies would benefit most from additional gains. BofA’s analyst, Winder, noted that producers typically have more price sensitivity than royalty and streaming companies. However, Winder noted that royalty and streaming companies can offer better long-term returns because of “higher margins, insulation from cost inflation, and much greater asset diversification.” He also pointed out that in recent years, operational challenges and construction risks have weighed on many producers, making royalty companies more stable.

Pan American Silver Corp. (NYSE:PAAS) operates mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. The company is a leading producer of silver and gold in the Americas.

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Disclosure: None. This article is originally published at Insider Monkey.