Teck Resources Ltd (TECK) PT Raised to $67 at Benchmark on Potential for Value Creation From Merger

Benchmark analyst Nathan Martin raised the price target on Teck Resources Ltd (NYSE: TECK) to $67.00 (from $48.00) while maintaining a Buy rating.

The analyst commented, "Teck Resources (TECK) reported 4Q adjusted EBITDA of C$1,513M, beating the C$1,360M consensus aided by strong pricing as well as lower net cash unit costs due to a byproduct credit tailwind. Looking ahead, all prior full-year 2026-2028 production targets were reiterated, and 2026 unit cost guidance was maintained. Notably, TECK’s 2026 forecast assumes byproduct prices below current spot and 2025 levels, which means both copper and zinc net cash unit costs could be lower if prices remain elevated. As for QB, shiploader repairs were completed in January and the company is on track with Tailings Management Facility (TMF) development. The fourth and fifth rock benches, sand dam construction, and secondary sand cyclone system are all on pace for completion by year end at which point TMF constraints should be alleviated. TECK’s Highland Valley mine life extension project is also underway. As it relates to the proposed merger with Anglo American (AAL LN: not rated), the companies have received numerous regulatory approvals, including one under the Investment Canada Act, with reviews by China and South Korea still pending. With the potential for an estimated $1.4B of revenue synergies at QB/Collahuasi and $800M of pre-tax recurring annual synergies, we continue to see the potential for strong value creation from the merger. As such, we reiterate our Buy rating and raise our target to $67."

You May Also Be Interested In

• York Space Systems (YSS) PT Lowered to $15 at Jefferies
• Golden Spike Resources plans name change, share consolidation and C$500K raise
• B.Riley Downgrades Lantheus Holdings (LNTH) to Neutral