Ero Copper (ERO – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Guilherme Rosito from Bank of America Securities maintained a Buy rating on the stock and has a C$26.00 price target.
Guilherme Rosito has given his Buy rating due to a combination of factors related to Ero Copper’s strategic positioning and financial metrics. Despite the recent quarterly results showing a miss in EBITDA expectations, Rosito sees potential in the company’s growth trajectory, particularly with the ramp-up at Tucumã expected to improve production levels in the coming quarters. The company’s ability to leverage the favorable copper market outlook, coupled with its high-growth and high-return profile, makes it an attractive investment.
Furthermore, Ero Copper’s valuation remains compelling, with a projected 3.5x EV/EBITDA for 2025 and a 13% free cash flow yield, indicating potential upside. The analyst maintains a positive outlook on the stock, supported by the company’s strategic initiatives and the anticipated recovery in production, which could enhance its financial performance moving forward.
In another report released on March 5, Raymond James also maintained a Buy rating on the stock with a C$26.00 price target.
ERO’s price has also changed moderately for the past six months – from $18.280 to $12.340, which is a -32.49% drop .