Andean Silver (ASX:ASL) is expected to gain from rising silver prices as the safe haven asset may see a rise in demand due to its use in solar panels, according to a Wednesday Euroz Hartleys note.

The research firm noted that global silver supply is restricted due to flat output from zinc and lead mines, long permitting delays, and lower-grade deposits, which have limited new silver production growth.

According to the research firm, Andean Silver offers an undervalued opportunity on the Australian market as its infrastructure is already in place, mining permits have been granted, and few listed competitors remain after recent takeovers.

Euroz Hartleys has raised its price target to AU$3.14, up from AU$2.24, and upgraded its rating to buy from speculative buy.

The company's shares fell 1% in recent Wednesday trade.