Southern Copper (NYSE:SCCO) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Southern Copper from “Buy” to “Hold.”
• Analyst sentiment is broadly cautious: the stock has a consensus “Reduce” rating and an average price target of $159.26; seven analysts rate it Sell, four Hold, and two Buy.
• Southern Copper beat quarterly estimates, reporting EPS of $2.13 versus $2.01 expected and revenue of $4.70 billion versus $4.49 billion expected.

Southern Copper (NYSE:SCCO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday, Wall Street Zen reports.

Other analysts have also issued research reports about the stock. Citigroup reiterated a "positive" rating on shares of Southern Copper in a research note on Wednesday, July 15th. UBS Group reissued a "sell" rating and set a $178.11 price target (up from $158.32) on shares of Southern Copper in a research report on Thursday, October 8th. Weiss Ratings lowered shares of Southern Copper from a "buy (b+)" rating to a "buy (b)" rating in a research note on Friday, October 30th. CICC Research lowered shares of Southern Copper to a "market perform" rating in a research report on Sunday, July 26th. Finally, Wells Fargo & Company set a $190.98 price objective on Southern Copper and gave the stock an "equal weight" rating in a research note on Friday, October 23rd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and seven have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average price target of $159.26.

Southern Copper Stock Performance

Shares of SCCO opened at $167.10 on Friday. The company has a current ratio of 4.31, a quick ratio of 4.56 and a debt-to-equity ratio of 0.59. The stock has a market capitalization of $139.42 billion, a P/E ratio of 23.48, a price-to-earnings-growth ratio of 1.66 and a beta of 1.15. The firm's fifty day simple moving average is $194.62 and its two-hundred day simple moving average is $185.44. Southern Copper has a 12 month low of $119.25 and a 12 month high of $223.88.

Southern Copper (NYSE:SCCO - Get Free Report) last announced its quarterly earnings data on Wednesday, October 21st. The basic materials company reported $2.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.01 by $0.12. The firm had revenue of $4.70 billion for the quarter, compared to analysts' expectations of $4.49 billion. Southern Copper had a return on equity of 51.61% and a net margin of 37.16%. During the same period last year, the firm earned $1.34 earnings per share. As a group, analysts predict that Southern Copper will post 8.01 EPS for the current year.

Institutional Investors Weigh In On Southern Copper

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Southern Copper in the 2nd quarter valued at approximately $1,729,500,000. Bank of America Corp DE purchased a new position in shares of Southern Copper in the second quarter valued at $318,448,000. Legal & General Group Plc acquired a new stake in Southern Copper in the second quarter worth about $149,739,000. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of Southern Copper during the 1st quarter worth $85,342,000. Finally, Deutsche Bank AG acquired a new stake in shares of Southern Copper during the second quarter worth about $85,770,000. 7.94% of the stock is owned by hedge funds and other institutional investors.

Southern Copper Company Profile

Southern Copper Corporation is an integrated mining company focused primarily on the exploration, mining, processing, and refining of copper. Its operations also produce molybdenum, zinc, lead, silver, and other mineral products.

The company operates mines and processing facilities in Peru and Mexico, including the Toquepala and Cuajone operations in Peru and the Buenavista and La Caridad operations in Mexico. Its activities extend across the mining and metals value chain, from extracting ore to producing refined metals and concentrates.

Southern Copper traces its origins to Southern Peru Copper Corporation, established in 1952, and is part of Grupo México.

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