Sinda (SIND) project in Mexico's Guanajuato mining district has the potential to become a major asset in one of the world's leading silver jurisdictions, Morgan Stanley said Tuesday in a report.

Sinda is an exploration and development company advancing the Sinda Project, a large-scale silver-gold discovery containing about 361 million ounces of silver-equivalent inferred resources and 15 million ounces of indicated resources, with grades that rank it among the higher-quality undeveloped underground deposits in Latin America, the report said.

The project offers "meaningful" resource growth and discovery potential, with only 26% of the property explored and 38% of the identified veins drilled, Morgan Stanley said.

The company is expected to focus on infill drilling, resource conversion, and exploration across the Caracol and Agaves zones to support future economic studies and potentially expand the project's life-of-mine and production profile, the report said.

Morgan Stanley initiated coverage of Sinda stock with an overweight rating and a $16.40 price target.

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