Nathan Martin, an analyst from Benchmark Co., maintained the Buy rating on Teck Resources. The associated price target is $48.00.
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Nathan Martin has given his Buy rating due to a combination of factors including Teck Resources’ strong performance in the third quarter, where the company reported adjusted EBITDA of C$1,171M, surpassing the consensus estimate. This was largely driven by robust sales in the zinc segment and favorable pricing adjustments. Additionally, Teck Resources is focusing on advancing a merger with Anglo American, which is expected to unlock significant synergies and optimization opportunities, potentially adding $1.4B in revenue synergies.
Despite some medium-term operational constraints, such as those related to the Tailings Management Facility, management remains confident in achieving long-term operational targets. The merger is seen as a strategic move that could enhance shareholder value, and the deal is anticipated to gain both shareholder and regulatory approval. These factors collectively support the Buy rating and a price target of $48, reflecting the potential for value creation through the merger.
In another report released on October 10, Raymond James also maintained a Buy rating on the stock with a C$63.00 price target.