NEW YORK ( TheStreet) -- Shares of silver producer Coeur d'Alene Mines ( CDE) have been surging following an upgrade by Deutsche Bank. Shares of Coeur were up 12% to $27.49 in afternoon trading. Meanwhile, peer Silver Wheaton ( SLW) was rising 2.5% to $35.10, while Silver Standard Resources ( SSRI) was up 4.8% to $25.37.
Analysts at Deutsche Bank raised their view of Coeur d'Alene to buy from hold with a 12-month price target of $54 a share as they become more bullish about the stock amid rising silver and gold prices. "Coeur, on the cusp of an operational turn-around and with significant silver production and rising gold, is levered to a rising silver and gold prices, leading us to rate the stock a buy," Deutsche Bank analyst Jorge Beristain explained in a note to investors. Beristain noted that Coeur's flagship silver mines -- San Bartolome in Bolivia and Palmarejo in Mexico -- appear to be finally headed for their designed capacity of 9 million ounces in 2012 following a rough start and that its Kensington gold mine in Alaska is expected to ramp to full capacity in the second quarter of 2011. He also notes that if the company is able to obtain permitting for renewed mining at its Rochester mine in Nevada, that would bring in an additional 2.5 million ounces of production capacity starting in 2012. Beristain notes that risks to the buy rating for Coeur d'Alene are, of course, lower-than-expected silver and gold prices. The analysts at Deutsche Bank have raised their 2011 and 2012 earnings per share estimates for Coeur d'Alene to $2.90, up 59% from their previous estimate, and to $5.43, up 88% from their previous forecast, respectively. The forecasts include the negative impact of ill-timed gold sales from the company's Palmarejo operations. The revised EPS estimates are 38% and 150% higher than Bloomberg consensus.
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