Metals Corp (MTAL) has received a new Buy rating, initiated by BMO Capital analyst, Matt Murphy.
Matt Murphy’s rating is based on several compelling factors that highlight the potential of Metals Corp. The company operates a high-grade, low-cost copper asset, and its management team has demonstrated expertise in optimizing operations. Metals Corp is focused on increasing copper production to over 50ktpa by 2026, with further potential for growth. The recent restructuring of its debt has also improved its financial outlook, reducing costs and enhancing its capital structure.
Additionally, Metals Corp’s strategic plans include the introduction of zinc mining, which is expected to stabilize production and reduce volatility. The company boasts a strong return on invested capital compared to its peers and is currently trading at a discounted valuation. These factors, combined with a robust growth profile and an attractive free cash flow yield, underpin Matt Murphy’s Buy rating for Metals Corp.
In another report released on April 7, Scotiabank also maintained a Buy rating on the stock with a $13.00 price target.