Analyst Guilherme Rosito of Bank of America Securities maintained a Buy rating on Ero Copper (ERO – Research Report), reducing the price target to C$26.00.
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Guilherme Rosito’s rating is based on Ero Copper’s strategic focus on addressing operational challenges and its promising future prospects. The company is working diligently to resolve delays in the Tucumã project caused by energy supply and equipment issues, with plans for extensive maintenance to achieve commercial production soon. Despite these challenges, copper recovery and grades have been better than expected, indicating that the problems are solvable.
At the Caraíba operations, efforts are underway to regain flexibility by working with two contractors and focusing on medium-term projects like the deepening expansion and new shaft expected by 2027. Additionally, the partnership with Vale for the Furnas project holds strong potential, with optimism about the deposit size and future development opportunities. Rosito maintains a Buy rating on Ero Copper, viewing it as a high-growth, high-return stock with an attractive valuation and significant free cash flow yield, even amidst recent operational setbacks.
In another report released on February 5, Scotiabank also maintained a Buy rating on the stock with a C$28.50 price target.
ERO’s price has also changed moderately for the past six months – from $19.340 to $13.190, which is a -31.80% drop .