Deutsche Bank Downgrades Teck Resources (TCK) to Sell

Deutsche Bank downgraded Teck Resources (NYSE: TCK) from Hold to Sell with a price target of $5.00. Analyst Jorge Beristain noted balance sheet concerns.

"Post-3Q15 results, our 2015-17 EBITDA estimates increased slightly (combination of b-t-e results and revised guidance), but NPV largely unchanged at $6/share (offset by higher net debt level). Our Price Target (PT) remains $5 based on 0.8x (unchanged) NAV multiple. As a result, we are downgrading Teck to a Sell, considering 26% downside potential to our PT at current price. Key concerns include the company’s rising net debt level, deteriorating value of its Energy assets, absence of key catalysts for further volume growth and downside risks to copper/zinc operations," said Beristain.

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 $6.73 yesterday.

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