Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Fresnillo shares down 4% after UBS downgrades

The Mexico-focused silver group Fresnillo (LON:FRES) has been downgraded by UBS as the stock’s performance has outstripped that of the precious metal. The shares have risen 7% since September 10, the broker points out, while the silver price has fallen 9%  
Fresnillo shares down 4% after UBS downgrades

The Mexico-focused silver group Fresnillo (LON:FRES) has been downgraded by UBS as the stock’s performance has outstripped that of the precious metal which the company mines.

The shares have risen 7% since September 10, the broker points out, while the silver price has fallen 9%.

UBS also highlighted the fact that the stock currently trades at 1.26 times its net asset value and 18.7 times this year’s project cash flow - 48% and 44% higher than the North American peer group, respectively.

It has therefore switched its recommendation to ‘neutral’ from ‘buy’ although its price target of £21 a share remains intact.

Fresnillo fell 72 pence or 4% in early trade and shares were changing hands for 1,812 pence.

“Despite the downgrade, we continue to believe the shares offer attractive exposure if silver and gold prices move higher. Fresnillo holds a well diversified portfolio of high-quality silver and gold assets,” analyst Chris Lichtenheldt said.


 

Ian_55ae0ddd437b7.jpg


Register here to be notified of future FRES Company articles
View full FRES profile

Fresnillo Timeline

Newswire
August 04 2015

Related Articles

arizona_silver.png
April 19 2017
Rusty remnants are still visible at the site in La Paz County, which was active throughout the 1920s.
Azarga---inspecting-core.jpg
April 04 2017
Azarga's Unkur deposit is now advancing through exploration, and the early signs are good
picture of Tesla charging booths
April 11 2017
The new strategy is to diversify from exclusively exploring silver deposits

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use