Deutsche Bank Downgrades Southern Copper (SCCO) to Sell, 'Ordinary growth & returns but valuation extraordinary'
Get Alerts SCCO Hot Sheet
Rating Summary:
2 Buy, 11 Hold, 10 Sell
Rating Trend:

Today's Overall Ratings:
Up: 11 | Down: 16 | New: 24
Join SI Premium – FREE
Deutsche Bank analyst Abhi Agarwal downgraded Southern Copper (NYSE: SCCO) from Hold to Sell with a price target of $45.00.
The analyst comments "Southern Copper (SCCO) shares have outperformed over the last one month (up 23% vs peers up 14%) driven by a rally in copper prices and the relatively in-line Q3/22. However, the updated guidance for 2023 onwards reflects that the company is struggling to get its operations on track after the COVID-related disruptions, as copper and zinc production was downgraded by 50Kt and 30Kt, respectively, while cash cost guidance was increased by ~10%. We believe these issues are not "oneoff" and expect a step-up in sustaining capex and opex to get the operations on track again. SCCO is trading at a premium to peers on spot (2023e EV/EBITDA of 11x vs peers at ~8x), which looks unjustified to us given issues around its growth projects. We downgrade the stock from HOLD to SELL with a 12-month price target of $45."
For an analyst ratings summary and ratings history on Southern Copper click here. For more ratings news on Southern Copper click here.
Shares of Southern Copper closed at $59.47 yesterday.
You May Also Be Interested In
- Dollar General (DG) cut at Piper Sandler on 'inexplicable sales/comp weakness'
- Wolfe Research Downgrades US Steel (X) to Underperform, 'Falling sheet, tubular and Europe prices hurt its outlook'
- Jefferies Upgrades SoftBank Group Corp (SFTBY) to Buy; 'likely beneficiary of ARM-NVDA links'
Create E-mail Alert Related Categories
Analyst Comments, Downgrades, Hot Comments, Hot DowngradesRelated Entities
Deutsche BankSign 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!