Teck Resources: Buy Rating Affirmed Amid Growth Potential and Challenges

Matt Murphy, an analyst from BMO Capital, maintained the Buy rating on Teck Resources. The associated price target is C$55.00.

Matt Murphy has given his Buy rating due to a combination of factors that highlight Teck Resources’ potential for future growth despite recent challenges. The company faced a difficult second quarter with reduced production guidance and increased spending plans, which impacted its stock performance. However, Murphy believes that if Teck can execute well in the second half of 2025, particularly with the ramp-up of the Quebrada Blanca (QB) project, it can achieve stronger operating cash flow and potentially re-rate positively.
Murphy emphasizes the importance of the QB project, noting that Teck is taking measures to overcome throughput restrictions and improve operations. The company expects production to increase in the latter half of 2025 and into 2026 as conditions normalize. While there are concerns about increased capital expenditures, Murphy maintains a target price of C$55 and an Outperform rating, suggesting confidence in Teck’s ability to deliver on its growth projects and improve its financial performance.

In another report released yesterday, RBC Capital also reiterated a Buy rating on the stock with a C$67.00 price target.

TECK’s price has also changed moderately for the past six months – from $43.360 to $35.120, which is a -19.00% drop .