First Majestic Silver upgraded to Buy as transformative Los Gatos acquisition and record Q4 2025 free cash flow of $250 million reshape the company's trajectory.

First Majestic Silver upgraded to Buy as transformative Los Gatos acquisition and record Q4 2025 free cash flow of $250 million reshape the company's trajectory. Q4 production surged 77 percent year-over-year with significant margin expansion at current silver levels. Despite a premium 17.4x forward P/E valuation, improved balance sheet strength, active portfolio optimization, and near-term catalysts justify the higher multiple. Silver leverage remains substantial as the company demonstrates improved operational discipline. Key risks persist including Mexico jurisdiction exposure and silver price sensitivity, but structural silver supply deficit supports the bullish investment case for AG shares.