PAAS Should I Buy
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Pan American Silver Corp (PAAS) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, increased hedge fund buying, and favorable market conditions for silver outweigh the short-term technical indicators suggesting potential minor declines. The long-term outlook for precious metals, driven by geopolitical uncertainty and supply deficits, supports this investment decision.
The MACD is negative and contracting (-0.156), indicating a bearish momentum. RSI at 61.874 is neutral, and moving averages are converging, showing no clear trend. The stock is trading near its resistance level (R2: 62.827) in pre-market, suggesting limited short-term upside. However, these indicators do not outweigh the long-term potential.
Analysts have raised price targets significantly, with CIBC projecting $88 and Scotiabank $64, citing strong demand for precious metals.
Hedge funds have increased buying by 269.91% over the last quarter.
The company reported record Q4 2025 revenues of $1.2 billion, a 44.8% YoY growth, and a 319.61% increase in net income.
The silver market is facing a supply deficit for the sixth consecutive year, which supports higher silver prices.
Technical indicators suggest potential short-term price declines, with an 80% chance of a -3.9% drop in the next day and -16.29% in the next month.
Jefferies lowered its price target to $54, citing mixed Q4 production results and higher costs in 2026 guidance.
Broader market sentiment is impacted by geopolitical tensions, including U.S.-Iran conflicts.
In Q4 2025, Pan American Silver reported a 44.68% YoY increase in revenue to $1.179 billion, a 319.61% YoY increase in net income to $451.5 million, and a 256.67% YoY increase in EPS to $1.07. Gross margin improved significantly to 48.16%, up 112.35% YoY. These results reflect strong operational performance and profitability.
Analysts are bullish on PAAS, with multiple firms raising price targets recently. CIBC increased its target to $88, Scotiabank to $64, and BofA to $73, citing strong demand for silver and gold, geopolitical uncertainty, and improved company performance. Jefferies, however, lowered its target to $54 due to mixed production results and higher costs.
