Lundin Mining (LUNMF) has received a new Buy rating, initiated by Goldman Sachs analyst, Matt Greene.
Matt Greene has given his Buy rating due to a combination of factors that highlight Lundin Mining’s strategic positioning and growth potential. The company’s transition to a pure-play copper miner, following the sale of its Neves-Corvo and Zinkgruvan mines, enhances its leverage to copper prices, which are anticipated to remain strong. This shift positions Lundin Mining for significant growth, with a substantial portion of its revenue now derived from copper, particularly from its core assets in South America.
Additionally, the development of the Vicuña copper district in Argentina, in partnership with BHP, represents a significant opportunity for Lundin Mining. The project is expected to deliver substantial copper output by the mid-2030s and offers a promising internal rate of return. The market has yet to fully appreciate Vicuña’s value, which could lead to valuation upside as the project progresses. With these factors in mind, Greene sets a 12-month price target that reflects the company’s potential for growth and value creation.
In another report released on February 24, J.P. Morgan also maintained a Buy rating on the stock with a SEK124.00 price target.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LUNMF in relation to earlier this year.