AMRK Stock Forecast & Price Target

A-Mark Precious Metals Inc. has reported significant year-over-year revenue growth of 32% in FQ2, reaching $2.74 billion, surpassing both internal estimates and market consensus. The company's strategic acquisition of SGI has positioned it to capitalize on higher margins from numismatic products and create cross-selling opportunities, which are anticipated to enhance EBITDA profitability over time. Additionally, an increase in institutional movements and inventory levels on the Comex commodity exchange suggests a positive outlook for the precious metals market, which could further benefit A-Mark's trading operations.

A-Mark Precious Metals Inc has reported a decline in profitability, with gross margins at 1.63%, which fell short of both estimates and the previous year's performance, signaling weakened demand. The company's gross profit of $44.8 million represents a 3% year-over-year decrease and underscores the challenges posed by high prices and declining spreads, especially in the silver market. Additionally, the reliance on mints for the supply of precious metals and the volatility of gold and silver prices raise concerns about the sustainability of its secured lending portfolio and related interest income.