Jefferies Upgrading To Buy, Raising PT To $47 On PAAS

Jefferies has upgraded its rating from Hold to Buy and has raised its price target from $37 to $48 on Pan American Silver PAAS, citing 2012 cash flow expectations as the reason for the changes. In the report, Jefferies writes, “We are raising our investment rating on Pan American to Buy from Hold. Our $48 price target reflects 12.5x our 2012 cash flow expectations and 1.7x NAV estimate ($25/oz silver, 6.5% discount rate). Our continued bullish silver outlook - silver metal price target of $50 and average of $38 - and the shares' relative underperformance has provided a more favorable risk/reward investment profile, leading to our upgrade.” PAAS closed yesterday at $35.85