U.S. futures soared over the last weeks despite the negative new earnings and unemployment data. Investors were expecting bad results, so they decided to shrug them off and stay optimistic about the future. Analysts think that the current rally has the potential to develop into true recovery.
The enormous support and stimulus being offered by governments and central banks also strengthened the sentiment, as it will benefit the equity markets. Michael Wilson, the chief US equity strategist, advises buying small-cap stocks. Such companies usually fly under-the-radar, which helps them weather storms more easily, making them more attractive for investors.
Great Panther Silver is a mining company, which focuses on gold and silver production. The company has changed the CEO and top management team recently. It mostly operates in Mexico, but Great Panther also owns an active mine in Brazil and has exploration operations in Peru.
The new management seems to compliment the company. However, along with other stocks, Great Panther’s overall production has taken a hit from the coronavirus pandemic. Two workers from Brazilian mine have the virus and remain in quarantine currently, but the shaft still operates. On the other hand, mining was halted in Mexico due to the government’s orders.
Despite restrictions, Great Panther’s silver production reached 393,000 equivalent ounces, gaining 11% year-over-year. The stock also saw an impressive 134% year-over-year increase in first-quarter gold production. At the end of 2019, it reported $37 million in cash on hand.
How much could investors gain with this stock?
According to Matthew O’Keefe, the analyst at Cantor Fitzgerald, this company has great potential despite recent setbacks. He set his target price at $1.10 for Great Panther. In case of success, shareholders could gain 134%.
The stock’s average price is only 47 cents per share. But the analyst noted that if the average price reaches $1.15 per share, it will have an upside potential of 145% for the next 12 months. Wall Street analyst corps share O’Keefe’s sentiment. They gave the stock a Strong Buy rating.
