So far, silver hasn’t been the hottest commodity on Wall Street in 2024 - but that doesn’t mean it doesn’t have potential. While gold futures (GCJ24) have set new record highs this year amid lingering inflation concerns, silver futures (SIK24) are just getting started. After a quiet start to 2024, the front-month contract has rallied 11.6% so far in March, and is now on pace to challenge the key overhead $26 level.
Notably, The Silver Institute projects an increase in industrial demand by 8% to a record 632 million ounces, which could further fuel the metal's rise. Against this backdrop, here's a look at one silver stock that analysts believe has significant upside potential.
Endeavour Silver Rallies in March
Endeavour Silver Corp. (EXK) is a Canadian mining company. It is involved in the acquisition, exploration, and development of precious metals in Chile and Mexico. Valued at $510 million by market cap, the company is a mid-tier precious metal company that owns 4 high-grade underground gold-silver mines in Mexico and has 3 exploration projects in Chile as it aims to become a premier senior silver producer.
Shares of Endeavour Silver have spiked 46% in the past month alone, though they're still trading 51.8% below their 52-week high.
Endeavour Silver released its Q4 results earlier this month, posting a profit of $3 million. Adjusted earnings arrived at $0.02 per share, down 50% YoY on lower sales volume, coupled with an increase in operating costs. Revenue fell by 38% for the quarter from $82 million to $50.5 million. The decline was due to the impact of the decline in gold and silver sales, partially offset by a rise in prices.
The Q4 results beat analysts' expectations on both the top and bottom line, with Wall Street targeting a loss of $0.01 per share on revenue of $49.5 million.
On the positive side, the company reported its decision to increase its mine and production capacity at Guanacevi surpassed its initial targets. It also announced the commencement of the Terronera project in 2024, which is expected to have a significant impact on its production level and margin expansion potential.
How Much Higher Can EXK Stock Go From Here?
Endeavour Silver stock has a consensus “Strong Buy” rating from analysts, with the mean price target of $4.11 reflecting a potential upside of 87.6% from Wednesday's closing price. Out of 4 analysts covering the stock, 3 have a “Strong Buy” rating and 1 has a “Hold” rating.
