UBS upgraded Southern Copper (SCCO) to Buy from Neutral with an unchanged price target of $120. The stock’s risk/reward is attractive following the 18% decline since the end of October, the analyst tells investors in a research note. The firm expects Southern Copper to benefit from higher copper price with the market expected to be in deficit despite the challenging macro backdrop, and better visibility on volume growth with Tia Maria to support 10% growth over the next four years. UBS believes copper stocks will continue to trade at a premium to the diversified miners given the attractive medium-term fundamentals of copper.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SCCO:
- Southern Copper price target raised to $72 from $52 at Scotiabank
- Trump comments spark copper price surge, Bloomberg reports
- Southern Copper Corp’s Financial Health at Risk: Navigating Regulatory Changes and Trade Tensions
- Southern Copper’s Strong Market Position and Growth Prospects Justify Buy Rating
- Trump Weekly: Mexico, Canada tariffs coming, EU could be next