Ero Copper cut to Neutral at Goldman Sachs on limited copper price upside

Goldman Sachs analyst Marcio Farid downgraded Ero Copper (ERO) to Neutral from Buy with a price target of $31, down from $33. Since last year, Ero Copper stock has rallied by over 100% in a move that can be mostly attributed to strong commodities prices and production growth, despite slower than expected operational momentum, but looking into the next 12 months, risk reward is less attractive due to limited copper price upside, some remaining operational uncertainties, and a less favorable valuation, the analyst tells investors in a research note. Goldman adds however that the Furnas project momentum is key to watch, noting that the firm could still become “more constructive”.