Credit Suisse maintained a neutral rating for Fresnillo but lowered its target price to 1,270 British pence from 1,460 on the back of updated 2018 gold and silver price forecasts and foreign currency outlook.
The company expects roughly flat gold and silver prices of US$1,291/oz and US$16.50/oz for 2018, and 19.75 pesos to the US dollar.
The Mexican miner's operations remain solid, based on expected volume and grade improvements, attractive growth projects, falling cash costs and declining capex, which should be more than sufficient to prop-up its already healthy balance sheet in the coming years, Westin said.
However, these positives are already priced into Fresnillo's shares, he added.
Fresnillo is ramping up its US$515mn San Julián silver-gold mine and plans to advance its US$155mn pyrites plant and US$110mn Centauro extension optimization projects during 2018.
The company's pipeline also includes optimizations at its Ciénega and Fresnillo mines and development of the Juanicipio and Orisyvo projects, which are scheduled to begin production in 2020 and 2021, respectively.
In addition to gold and silver price fluctuations and the possibility of unplanned disruptions to its operations, key risks for the miner are broadly political, according to Westin.
Left-wing president-elect Andrés Manuel López Obrador, or AMLO, won a landslide victory in the July 1 polls.
While the Morena party leader has sought to smooth concerns among the business community, his plans for the mining sector remain unclear.
"Political risks in Mexico, changes in mining legislation, and the outcome of the Nafta renegotiation could also result in volatility of share prices," the analyst added.
Credit Suisse also lowered its target share price for Fresnillo parent company Industrias Peñoles to 390 pesos from 460 and maintained a neutral rating.
Fresnillo closed at 1,149.5 pence on the London Stock Exchange on Thursday.