BofA Turns Cautious on Southern Copper (SCCO) Despite Higher Price Target
Southern Copper Corporation (NYSE:SCCO) is included among the 13 Best Performing Long Term Stocks to Invest in.
On February 26, BofA downgraded Southern Copper Corporation (NYSE:SCCO) to Underperform from Neutral. It raised its price target on the stock to $175 from $162. The firm said the downgrade reflects concerns about the stock’s “stretched” valuation and weaker near-term operating outlook.BofA said the company’s valuation has become “difficult to justify” following the recent rally in its shares. The firm expects Southern Copper’s production to decline by 3% through 2027. It also said the stock appears to reflect a more optimistic scenario that may not materialize.
Earlier, on January 30, Morgan Stanley raised its price recommendation on Southern Copper to $156 from $137. The firm reiterated an Underweight rating on the shares. The update came after the firm revised its estimates to reflect current commodity prices, foreign exchange assumptions, and the company’s latest guidance following its Q4 earnings report.
Southern Copper Corporation (NYSE:SCCO) operates as an integrated copper producer. The company produces copper, molybdenum, silver, and zinc. Its mining, smelting, and refining operations are based in Peru and Mexico, and it also conducts exploration activities in Argentina, Chile, and Ecuador.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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