Nomura Securities Maintains a 'Neutral' on Teck Resources (TCK); Marking to Market Q2 Prices
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Price: $27.24 -0.47%
Rating Summary:
6 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
6 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Nomura Securities maintains a 'Neutral' on Teck Resources (NYSE: TCK) price target of CAD40.00.
Analyst, Curt Woodworth, said, "We have reduced our 2Q EPS estimates to C$0.65 from C$0.80 per share, reflecting lower realized coppers price during the quarter, which fell from $3.8/lb to an average of $3.57/lb. The lower realized price should also result in negative provisional pricing adjustment, which we estimate to be $60mm this quarter. A softer zinc market this quarter has also affected earnings with the average zinc spot price falling by 4.6% during the quarter to $0.88/lb. According to BHP Billiton's (NYSE: BHP) production update for Q2, Antamina’s production increased by 13% QoQ, reflecting the increased mill rate from the newly commissioned ball mill and SAG mill during Q1. We remain Neutral on Teck, owing to the uncertain global economic outlook, and an expected increase in metallurgical coal supply resulting from the BMA resolution, which could pressure coking coal prices."
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 $29.27 yesterday, with a 52 week range of $25.76-$53.89.
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Analyst, Curt Woodworth, said, "We have reduced our 2Q EPS estimates to C$0.65 from C$0.80 per share, reflecting lower realized coppers price during the quarter, which fell from $3.8/lb to an average of $3.57/lb. The lower realized price should also result in negative provisional pricing adjustment, which we estimate to be $60mm this quarter. A softer zinc market this quarter has also affected earnings with the average zinc spot price falling by 4.6% during the quarter to $0.88/lb. According to BHP Billiton's (NYSE: BHP) production update for Q2, Antamina’s production increased by 13% QoQ, reflecting the increased mill rate from the newly commissioned ball mill and SAG mill during Q1. We remain Neutral on Teck, owing to the uncertain global economic outlook, and an expected increase in metallurgical coal supply resulting from the BMA resolution, which could pressure coking coal prices."
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 $29.27 yesterday, with a 52 week range of $25.76-$53.89.
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