B.Riley Downgrades A-Mark Precious Metals (AMRK) to Neutral 'on Softer Demand, Strong Equity Performance'

B.Riley analyst Lucaa Pipes downgraded A-Mark Precious Metals (NASDAQ: AMRK) from Buy to Neutral with a price target of $33.00.

The analyst comments "We are downgrading A-Mark Precious Metals (AMRK, $33 PT) from Buy to Neutral. Market conditions have been weaker than we had anticipated over the last two quarters. Consequently, results have been below both our and consensus estimates. AMRK previously reported F3Q24 results on May 7, which we discussed in our flash note here. The stock has bucked the challenging market environment, and the equity is still trading near the top end of its two-year trading range. The trailing 12-month P/E multiple has expanded from 5.9x in 2022 to 9.4x today. Most recently, our daily scrub of premiums has shown improvement off the lows, with silver premiums rising 30% from their January 8th low and gold premiums rising 47% from their April 2nd low. This improvement is encouraging, and we expect it to lead to moderately better results for the current quarter. However, we believe that the equity is baking in a stronger recovery. Quarter-to-date silver margins are up only 10% Q/Q, and gold margins are down 14% Q/Q. We believe that this puts F4Q24 (June quarter) adjusted EBITDA at $22.3M (from $38.4M) and EPS at $0.54 (from $1.06). For FY25, we are revising our EPS/EBITDA estimates from $5.96/$201.5M to $3.00/$117.1M. Our PT remains $33 on a higher multiple of 11.0x P/E (from 9.3x) and 9.0x EV/EBITDA (from 7.0x), which reflects the successful re-rating of the equity during this stronger gold price environment."

For an analyst ratings summary and ratings history on A-Mark Precious Metals click here. For more ratings news on A-Mark Precious Metals click here.

Shares of A-Mark Precious Metals closed at $39.80 yesterday.

You May Also Be Interested In

• Oppenheimer Downgrades Cartesian Therapeutics (RNAC) to Perform
• William Blair Starts Waystar Holding (WAY) at Outperform
• Morgan Stanley on Tesla (TSLA): '1st Positive Surprise of the Year'