A-Mark Precious Metals Sees Volume Opportunities Despite Margin Compression: Analyst
Portfolio Pulse from Lekha Gupta
B. Riley Securities analyst Lucas N. Pipes has lowered the price target on A-Mark Precious Metals Inc (AMRK) to $45 from $54 while maintaining a Buy rating. The analyst reduced estimates for Q1 FY24 EPS to $0.97 from $1.38 per share and adjusted EBITDA to $32.3 million from $45.3 million. Despite the margin compression, the company sees the low-margin environment as an opportunity to attract new customers and boost volumes. AMRK shares are trading lower by 2.7% at $29.80.
September 25, 2023 | 7:22 pm
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A-Mark Precious Metals Inc's price target has been lowered by B. Riley Securities, but the company is seen as well-positioned for M&A and volume growth despite margin compression.
The lowering of the price target by B. Riley Securities could negatively impact investor sentiment, leading to a potential short-term decrease in the stock price. However, the analyst's positive outlook on the company's M&A prospects and volume growth could mitigate this impact in the longer term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100