FBR Capital Remains Bullish on Teck Resources (TCK) Following Suncor Energy's (SU) Announced Additional Fort Hills Purchase
Get Alerts TCK Hot Sheet
Rating Summary:
7 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AO World Plc. (AO/:LN) PT Raised to GBP1.25 at Jefferies
- 29Metals Ltd (29M:AU) PT Lowered to AUD0.50 at RBC Capital
- BofA Securities Upgrades Estee Lauder (EL) to Buy; 'Earnings have bottomed'
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!