Matt Murphy, an analyst from BMO Capital, has initiated a new Buy rating on Hudbay Minerals (HBM).
Matt Murphy has given his Buy rating due to a combination of factors that highlight Hudbay Minerals’ strong position and growth potential. The company is well-managed, with significant copper and gold production, and possesses low-risk assets that offer good exposure to commodity price movements. Key catalysts include the development of Copper World and the turnaround of Copper Mountain, which are expected to drive future growth.
Murphy points out that Hudbay Minerals is trading at a valuation below 4.0x EV/EBITDA, which he considers attractive given the company’s ability to sustain current production levels. The Copper World project is particularly promising, with expected strong production and potential benefits from favorable US policies on domestic mineral production. Additionally, ongoing exploration in Peru and Canada is anticipated to further enhance the company’s outlook, supporting his positive assessment.
Murphy covers the Basic Materials sector, focusing on stocks such as Agnico Eagle, Hudbay Minerals, and Newmont Mining. According to TipRanks, Murphy has an average return of 18.3% and a 69.64% success rate on recommended stocks.
In another report released on April 8, Bank of America Securities also maintained a Buy rating on the stock with a $9.00 price target.