Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 20 Feb, 26 | PAAS | Buy | USD 61.21 | USD 64.5 | USD 68.0 | 3 days | Closed |
6.19%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.
Meaningful Improvement in Gross Margin: Gross margin increased to 36.6% in Q3 2025 compared to 24.0% in Q3 2024, reflecting stronger pricing power and operational efficiency
Strong Expansion in Net Margin: Net margin improved significantly to 19.8% in Q3 2025 from 8.0% in Q3 2024, indicating enhanced profitability and better cost absorption
Elevated Inventory Holding Period: Average inventory days rose to 100.0 days in Q3 2025, exceeding the industry median of 85.8 days, suggesting relatively slower inventory turnover
Extended Cash Conversion Cycle: Cash cycle days stood at 92.1 days in Q3 2025, substantially higher than the industry median of 45.2 days, indicating greater working capital intensity
Exposure to fluctuations in commodity prices, evolving regulatory and compliance requirements, potential impacts from trade tariffs and geopolitical policies, persistent inflationary cost pressures, and the risk of reduced operating cash flow generation
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 61.21 | 55.0 | 64.5 | 68.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Robust Cash Flow and Liquidity Position: Pan American generated record attributable free cash flow of USD 251.7 million in Q3 2025, strengthening its cash and short-term investment balance to USD 910.8 million, in addition to USD 85.8 million held at Juanicipio (44% interest). Record quarterly revenue of USD 884.4 million and operating cash flow of USD 323.6 million reflect healthy operating margins. With total available liquidity of USD 1.66 billion, the company maintains substantial financial flexibility to support ongoing and future growth initiatives.
Strategically Accretive MAG Silver Acquisition: The acquisition of MAG Silver secures a 44% interest in the high-grade Juanicipio operation, contributing meaningfully to production and free cash flow despite only one month of consolidation in Q3. Following the transaction, Pan American revised its 2025 silver production guidance upward to 22.0–22.5 million ounces and reduced Silver Segment AISC guidance to USD 14.50–USD 16.00 per ounce, enhancing its position as a lower-cost, higher-margin silver producer.
Balanced Shareholder Returns and Growth Investments: Strong operating performance supported an increase in the quarterly dividend to USD 0.14 per share, with USD 146.9 million returned to shareholders year-to-date through dividends and share repurchases. Concurrently, internal growth opportunities—most notably the potential phased development of the La Colorada Skarn project—provide a pathway for higher-grade, capital-efficient expansion, reinforcing long-term value creation.
Considering the expected valuation upside, record cash flow generation strengthening financial position, enhancing silver growth profile and key business risks, a ‘Buy’ recommendation has been given on the stock at the last closing price of USD 61.21, as on February 19, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Gold
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PAAS Pan American Silver Corp. |
-1.46 2.89% | 49.00 | - | 14.03 | 2.95 | 1.68 | 3.06 | 11.16 |
| AEM Agnico Eagle Mines Limited |
-6.33 3.66% | 166.66 | 22.95 | 16.00 | 8.59 | 4.38 | 8.85 | 12.58 |
| B Barrick Mining Corporation |
-0.95 2.30% | 40.34 | 14.66 | 11.20 | 4.26 | 2.71 | 4.14 | 6.35 |
| AU AngloGold Ashanti plc |
-0.05 0.06% | 90.87 | 20.56 | 12.69 | 5.44 | 6.65 | 5.37 | 9.20 |
| NEM Newmont Goldcorp Corp |
-1.88 1.78% | 103.79 | - | 11.61 | 4.29 | 2.48 | 4.55 | 26.44 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on February 20, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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