UBS cuts Southern Copper to Neutral from Buy, says risk-reward balanced

As previously reported, UBS analyst Myles Allsop downgraded Southern Copper (SCCO) to Neutral from Buy with a $105 price target UBS noted that Southern Copper’s stock is up 32% since April, and is now trading back at 12.5x consensus EV/EBITDA, which is “broadly in line with its trading multiple in 2023/2024.” UBS feels the downside risk to copper prices over the next six months – due to macro uncertainty and trade war issues – limits upside risk, and believes the stock is currently “risk-reward balanced.”