Sell Rating on Nexa Resources SA Due to Financial Vulnerability and Earnings Discrepancy

Bank of America Securities analyst Lawson Winder maintained a Sell rating on Nexa Resources SA on October 31 and set a price target of $5.00.

Lawson Winder has given his Sell rating due to a combination of factors affecting Nexa Resources SA. Despite Nexa’s Q3’25 adjusted EBITDA exceeding expectations, the company reported an adjusted loss per share, which was significantly below forecasts. This discrepancy was attributed to higher minority interest and other adjustments, which negatively impacted the earnings.
Additionally, while Nexa maintained its 2025 production guidance, the company’s balance sheet remains a concern. The BofA Commodities Team holds a cautious outlook on zinc, which, coupled with Nexa’s relatively high net debt to EBITDA ratio compared to the sector average, suggests financial vulnerability. These factors contribute to the Sell rating as they indicate potential challenges for Nexa in meeting financial expectations and managing its debt effectively.