Scotiabank Forecasts Strong Price Appreciation for Southern Copper (NYSE:SCCO) Stock

Key Points

• Scotiabank raised its price target on Southern Copper to $133 (from $125) but kept a "sector underperform" rating, implying about a 29% downside from the previous close.
• MarketBeat's consensus is a "Reduce" with an average price target of $145.61, reflecting mixed analyst views (2 Buy, 4 Hold, 7 Sell).
• Southern Copper slightly beat quarterly EPS estimates ($1.55 vs. $1.54) and shows strong profitability (ROE ~41.97%, net margin ~32.3%); the stock trades near $187.29 with a market cap of $153.41B and a P/E of 35.18.

Southern Copper (NYSE:SCCO - Get Free Report) had its target price upped by equities researchers at Scotiabank from $125.00 to $133.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "sector underperform" rating on the basic materials company's stock. Scotiabank's price objective indicates a potential downside of 28.99% from the company's previous close.

Other research analysts have also issued reports about the company. Wall Street Zen raised Southern Copper from a "hold" rating to a "buy" rating in a report on Saturday, March 21st. Wells Fargo & Company set a $186.00 price objective on Southern Copper and gave the company an "equal weight" rating in a report on Wednesday, April 15th. Morgan Stanley upped their price objective on Southern Copper from $155.00 to $160.00 and gave the company an "underweight" rating in a report on Thursday, April 9th. Citigroup reaffirmed a "sell" rating on shares of Southern Copper in a report on Monday, January 12th. Finally, Bank of America lowered Southern Copper from a "neutral" rating to an "underperform" rating and upped their price objective for the company from $162.00 to $175.00 in a report on Thursday, February 26th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and seven have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Southern Copper has a consensus rating of "Reduce" and an average price target of $145.61.

Southern Copper Stock Performance

NYSE SCCO traded down $0.43 on Thursday, reaching $187.29. The stock had a trading volume of 678,378 shares, compared to its average volume of 2,003,700. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.89 and a quick ratio of 3.40. The firm has a fifty day moving average of $186.46 and a two-hundred day moving average of $162.70. Southern Copper has a 1-year low of $86.59 and a 1-year high of $223.88. The company has a market cap of $153.41 billion, a P/E ratio of 35.18, a price-to-earnings-growth ratio of 1.85 and a beta of 1.16.

Southern Copper (NYSE:SCCO - Get Free Report) last issued its quarterly earnings data on Wednesday, January 28th. The basic materials company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.54 by $0.01. Southern Copper had a return on equity of 41.97% and a net margin of 32.30%.The firm had revenue of $3.87 billion for the quarter, compared to analyst estimates of $3.73 billion. During the same period in the prior year, the firm posted $0.98 EPS. On average, equities research analysts anticipate that Southern Copper will post 6.79 EPS for the current year.

Insider Buying and Selling at Southern Copper

In other news, Director Lerdo De Tejada Leon Contreras sold 9,326 shares of the stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $209.56, for a total transaction of $1,954,344.91. Following the sale, the director directly owned 605 shares of the company's stock, valued at approximately $126,783.04. This represents a 93.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Bonilla Luis Miguel Palomino sold 193 shares of the stock in a transaction on Friday, March 13th. The stock was sold at an average price of $174.60, for a total value of $33,697.80. Following the sale, the director directly owned 1,707 shares in the company, valued at approximately $298,042.20. This trade represents a 10.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 9,526 shares of company stock worth $1,989,373. 0.07% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Southern Copper

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capital World Investors lifted its stake in Southern Copper by 36.1% during the third quarter. Capital World Investors now owns 6,437,608 shares of the basic materials company's stock worth $781,268,000 after purchasing an additional 1,708,693 shares during the last quarter. State Street Corp lifted its position in shares of Southern Copper by 2.4% during the 4th quarter. State Street Corp now owns 2,862,244 shares of the basic materials company's stock worth $410,646,000 after buying an additional 66,268 shares during the last quarter. Fisher Asset Management LLC lifted its position in shares of Southern Copper by 0.3% during the 4th quarter. Fisher Asset Management LLC now owns 2,536,228 shares of the basic materials company's stock worth $363,873,000 after buying an additional 7,194 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Southern Copper by 8.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,181,293 shares of the basic materials company's stock worth $169,480,000 after buying an additional 90,237 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Southern Copper by 12.8% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,091,632 shares of the basic materials company's stock worth $132,479,000 after buying an additional 123,532 shares during the last quarter. 7.94% of the stock is currently owned by institutional investors.

About Southern Copper

Southern Copper Corporation NYSE: SCCO is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.

Southern Copper's operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.

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