UPDATE - Barclays Downgraded Southern Copper (SCCO) to Underweight; Lower Visibility on Growth;

UPDATE - Barclays downgraded Southern Copper (NYSE: SCCO) from Equalweight to Underweight, price target lowered from $34 to $32.

Barclays analyst says, "Reduced visibility on growth. In light of rising project execution risks in the industry (particularly in Peru), we are reducing our growth assumptions for SCC. In line with other miners in the region, SCC has faced serious challenges to deliver volume growth during the past 5-years (copper production in 2005 was 690kt / we forecast production in 2012 to reach 606kt), and we see project execution risks rising. In our view, exogenous factors such as political developments and social unrest in Peru pose a threat to the company, and will likely lead market observers to adjust volume expectations. Our sense is that some investors expect SCC to almost double copper capacity to 1-1.2Mtpa by 2016-18, which we consider excessively optimistic. We believe the volatile situation in Peru warrants caution."

To see more ratings on SCCO, Click Here

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