Southern Copper upgraded to Neutral from Sell at Goldman Sachs

Goldman Sachs upgraded Southern Copper (SCCO) to Neutral from Sell with a price target of $178, up from $142.79. The firm says the copper scarcity premium is “larger than ever” due to expectations of structural supply/demand tightness. With Southern Copper being the largest pure copper player with a long life of mine reserves in friendly jurisdictions, the shares deserve a large premium to peers, the analyst tells investors in a research note. Goldman also believes the company has “strong defensive positioning” in a copper downturn given its low cost profile and relatively lower operating leverage.