Jefferies analyst Alejandro Demichelis reiterated a Buy rating on Southern Copper (SCCO – Research Report) on February 28 and set a price target of $130.00.
Alejandro Demichelis has given his Buy rating due to a combination of factors that highlight Southern Copper’s strong position in the market. The company’s operational strength is evident with improvements in water availability and maintenance completion at key sites, suggesting potential upside to their conservative production guidance for 2025. Additionally, the development of the Tia Maria project and other significant projects in Peru and Mexico indicate strong medium-term growth opportunities.
Southern Copper’s flexibility in reallocating sales volumes amidst potential US tariff changes, coupled with a solid balance sheet, provides the company with ample financial flexibility. The current dislocation between copper prices and SCCO shares presents an attractive opportunity for investors, as the stock trades at a significant discount to its net asset value. These factors, along with the potential value unlocked by the Tia Maria project, underpin Demichelis’s Buy rating and the price target of $130.
According to TipRanks, Demichelis is a 2-star analyst with an average return of 1.5% and a 36.00% success rate. Demichelis covers the Energy sector, focusing on stocks such as YPF Sociedad Anonima, Ecopetrol SA, and Petroleo Brasileiro SA- Petrobras.