Benchmark Co. analyst Nathan Martin maintained a Buy rating on Teck Resources yesterday and set a price target of $48.00.
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Nathan Martin’s rating is based on Teck Resources’ strong potential for growth in its copper segment, despite some ongoing challenges. The company has faced issues with its Quebrada Blanca (QB) operations, including delays due to development work at the Tailings Management Facility and a shiploader outage, which have impacted production and increased costs. However, management remains optimistic about achieving design rates by the end of the year and meeting long-term targets.
Additionally, Teck Resources has announced the Highland Valley Copper Mine Life Extension project, which is expected to significantly boost copper production from 2028 to 2046. This initiative aligns with the company’s broader strategy to double its copper output by the end of the decade. Although the target price has been lowered, the Buy rating is maintained as the current share price is believed to largely reflect the temporary setbacks at QB, and the long-term copper growth story remains compelling.
According to TipRanks, Martin is a 5-star analyst with an average return of 22.0% and a 64.52% success rate. Martin covers the Basic Materials sector, focusing on stocks such as Suncoke Energy, Coronado Global Resources Inc. Shs Chess Depository Interests Repr 10 Sh, and Warrior Met Coal.
In another report released on July 25, Canaccord Genuity also maintained a Buy rating on the stock with a C$63.00 price target.