Fresnillo (LON:FRES) Shares Down 12.2% - Here's Why

Key Points

• Fresnillo's shares dropped 12.2% during trading, closing at GBX 2,114 ($28.27), down from the previous close of GBX 2,408 ($32.20).
• Multiple research firms have raised their price targets for Fresnillo, with Royal Bank of Canada setting a price objective of GBX 1,400 and Berenberg Bank increasing it to GBX 2,600.
• Fresnillo is recognized as the world's largest silver producer and Mexico's largest gold producer, with a market cap of £15.68 billion and plans for continued growth in the precious metals sector.

Fresnillo plc (LON:FRES - Get Free Report) fell 12.2% during mid-day trading on Wednesday . The company traded as low as GBX 2,000 ($26.74) and last traded at GBX 2,114 ($28.27). 2,780,052 shares changed hands during trading, a decline of 14% from the average session volume of 3,248,329 shares. The stock had previously closed at GBX 2,408 ($32.20).

Wall Street Analyst Weigh In

Several brokerages recently weighed in on FRES. Berenberg Bank raised their price target on shares of Fresnillo from GBX 1,700 to GBX 2,600 and gave the company a "buy" rating in a research report on Tuesday, October 7th. Royal Bank Of Canada increased their price objective on Fresnillo from GBX 1,200 to GBX 1,400 and gave the stock a "sector perform" rating in a research note on Monday, August 11th. Citigroup lifted their target price on Fresnillo from GBX 1,300 to GBX 1,700 and gave the company a "buy" rating in a research report on Thursday, July 10th. Canaccord Genuity Group upped their price target on Fresnillo from GBX 980 to GBX 2,440 and gave the stock a "hold" rating in a report on Friday, October 17th. Finally, JPMorgan Chase & Co. raised their price objective on Fresnillo from GBX 1,850 to GBX 2,100 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of GBX 2,048.

Fresnillo Price Performance

The stock has a market cap of £15.80 billion, a PE ratio of 34.69, a P/E/G ratio of -1.58 and a beta of 0.15. The company has a debt-to-equity ratio of 23.55, a quick ratio of 3.28 and a current ratio of 5.88. The business has a 50 day moving average price of GBX 2,124.68 and a two-hundred day moving average price of GBX 1,559.36.

About Fresnillo

Fresnillo plc is the world's largest silver producer and Mexico's largest gold producer, listed on the London and Mexican stock exchanges. The Group seeks to create value for stakeholders across precious metal cycles, focusing on high-potential silver and gold projects that can be developed into low cost, world-class mines. Following a decade of consistent and successful progress, the Group is now focused on consolidating its growth and advancing its pipeline in order to deliver further growth in the years ahead.

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