BUY OR SELL-Peruvian metals stocks: how high can they go?

* Shares have soared on rising metals prices

* Bulls still see chance to get in early

* Bears say rally is not sustainable

By Dana Ford

LIMA, Aug 10 (Reuters) - Shares of Peruvian mining companies have skyrocketed this year as investors bet on the steady climb in metals prices, but analysts are split over whether the rise will continue or is overblown.

Volcan (VOL_pb.LM), the heaviest weighted stock in Peru's general index .IGRA, has jumped more than 250 percent since January, while shares of other top miners -- Southern Copper (SPC.LM), Buenaventura (BUEv.LM), Milpo (MIL.LM), Atacocha (ATB.LM), Cerro Verde (CVE.LM) and Minsur (MINi.LM) -- have gained an average of 74 percent.

Still, stocks are nowhere near as high as they were last year, before the economic slowdown and subsequent slam in sales and prices.

Some investors say now is the time to jump in but others, who were badly burned by last year's crash, doubt Peruvian mining stocks still have an upside.

So -- is there room to grow, or is the rally over?

BUY

Edwin Paz, an analyst at the SAB Provalor brokerage in Lima, said Peruvian metals stocks are undervalued and that their fundamentals, combined with strong Chinese demand and a rosier global outlook, will help to push prices up this year.

Peru is the world's top producer of silver, No. 2 in copper and zinc, and ranks sixth in gold.

"The prices of raw materials ... have encouraged my clients to start retaking positions in stocks tied to copper, zinc, gold and silver," said Paz.

Others suggested companies that deal in certain metals.

Rodrigo Zuazo, an analyst with Centura SAB in Lima, recommends buying shares of Minsur, Peru's largest tin miner, which he says has an upside of around 20 percent.

Relatively stable tin prices make Minsur a good buy, said Zuazo, as does the fact its stock has not soared quite so high, nor as quickly, as shares in other mining companies.