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FBR Capital Remains Bullish on Teck Resources (TCK) Following Suncor Energy's (SU) Announced Additional Fort Hills Purchase

September 21, 2015 11:32 AM EDT
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Price: $25.36 --0%

Rating Summary:
    7 Buy, 15 Hold, 2 Sell

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Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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FBR Capital reiterated an Outperform rating on Teck Resources (NYSE: TCK) following Suncor Energy's (NYSE: SU) announced agreement to purchase an additional 10% interest in the Fort Hills oil sands project from Total E&P for C$310 million. Teck Resources has a 20% interest in the oil sands project.

Analyst Lucas Pipes commented, "This morning, Suncor announced its agreement to purchase an additional 10% interest in the Fort Hills oil sands project from Total E&P for C$310 million. As a reminder, Teck Resources (FBR Top Pick) has a 20% interest in the oil sands project, which we value at C$1,945 million. Importantly, the transaction this morning between Total E&P and Suncor is right in-line with our valuation when considering Suncor’s incremental capital increase. We reiterate our Outperform rating on Teck Resources as an FBR Top Pick. We believe that the company’s interest in Fort Hills greatly reduces its overall risk profile, and we are encouraged by Suncor’s continued commitment to the project. We are also positive on Teck Resources for its low-cost exposure to met coal and zinc, two commodities that we see better positioned in the current market environment."

For an analyst ratings summary and ratings history on Teck Resources click here. For more ratings news on Teck Resources click here.

Shares of Teck Resources closed at $6.15 yesterday.



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