First Majestic Silver Upgraded to Buy Amid Strong Q2 Results and Attractive Valuation

First Majestic Silver has received an upgrade to 'Buy' from analysts due to its discounted valuation relative to intrinsic value, driven by silver's potential price recovery. The company posted strong Q2 results with a 110% increase in EBITDA and free cash flow of $194.6 million, despite rising costs.

The improved results were supported by higher silver and gold prices, which also led to a significant decrease in commodity price volatility risks for the company. First Majestic's strong cash position of $1.09 billion and ongoing asset sales have positioned it well for reinvestment and potential mergers or acquisitions.

Risks remain from macroeconomic challenges, but the risk-reward profile has improved significantly after the share price decline since February. The company has also provided improved 2026 guidance, further supporting its attractive valuation.