UPDATE: BMO Capital Downgrades Endeavour Silver to Underperform on Low Silver Prices

In a report published Monday, BMO Capital Markets analyst Andrew Kaip downgraded the rating on Endeavour Silver Corp. (NYSE: EXK) from Market Perform to Underperform, and lowered the price target from $6.50 to $3.00.

In the report, BMO Capital Markets noted, “BMO Research has ranked 24 proposed silver mines outlined in the report titled: ‘Silver Sector Analysis – Potential New Silver Mines Assessed.' In the report, BMO recommends that investors increase their exposure to low-cost producers with high quality development projects due to the declining precious metal price environment. Despite the positive roll-out of redevelopment activities at El Cubo, the precipitous decline in precious metal prices has strained the EDR valuation and exposed the company's high all-in-costs (recently outlined in the recent analysis entitled ‘What Silver Costs'). EDR is potentially positioned to combat declining metal prices through successful integration of El Cubo, higher production at Bolanitos and exploration at San Sebstian. These drivers could be key catalysts through H2/13.”

Endeavour Silver Corp. closed on Friday at $3.43.