Barclays starts Southern Copper at Underweight on ‘stretched’ valuation

Barclays last night initiated coverage of Southern Copper (SCCO) with an Underweight rating and $148 price target The stock in premarket trading is down 63c to $178.49. Southern Copper’s valuation premium relative to its large- and small-cap copper peers “appears stretched beyond its typical and warranted level,” the analyst tells investors in a research note. Barclays says Southern Copper is a “clear global leader” in copper production due to its low-cost operations, growth pipeline, “industry-leading reserve base, and high-yielding dividend.”