RBC Capital Markets upgraded its stance on shares of Fresnillo to ‘outperform’ from ‘sector perform’ as it argued that after weak first-quarter silver production and lower guidance, market expectations “seem to have been largely reset”.
The bank said the precious metals miner is now set to deliver a growth phase, with the ramp-up of the Juanicipio project improving free cash flow.
“With the shares underperforming peers and trading at the low end of its historical multiple ple range, we upgrade our recommendation,” RBC said.
