Scotiabank Issues Pessimistic Estimate for TSE:FM Earnings

Key Points

• Scotiabank lowered its FY2027 EPS estimate for First Quantum to $2.35 (from $2.44) but maintained an Outperform rating and a C$45 target price.
• In the last quarter First Quantum reported just C$0.01 EPS on C$1.95 billion in revenue, with negative return on equity and net margins, and has placed key assets (Cobre Panamá and Ravensthorpe) into preservation/care-and-maintenance.
• Analysts collectively view the stock as a Moderate Buy with an average target of C$41.35 while shares trade near C$39.34; however the company carries high leverage (debt-to-equity ~52.9) and a deeply negative P/E, signaling valuation and risk concerns.

First Quantum Minerals Ltd. (TSE:FM - Free Report) - Equities researchers at Scotiabank decreased their FY2027 earnings per share estimates for shares of First Quantum Minerals in a report released on Friday, April 17th. Scotiabank analyst O. Wowkodaw now expects that the company will earn $2.35 per share for the year, down from their previous forecast of $2.44. Scotiabank currently has a "Outperform" rating and a $45.00 target price on the stock. The consensus estimate for First Quantum Minerals' current full-year earnings is $0.56 per share.

First Quantum Minerals (TSE:FM - Get Free Report) last announced its earnings results on Tuesday, February 10th. The company reported C$0.01 earnings per share for the quarter. The business had revenue of C$1.95 billion during the quarter. First Quantum Minerals had a negative return on equity of 0.24% and a negative net margin of 0.52%.

Other research analysts also recently issued reports about the company. Jefferies Financial Group upped their target price on First Quantum Minerals from C$38.00 to C$47.00 in a research note on Monday, January 12th. UBS Group upgraded First Quantum Minerals from a "hold" rating to a "buy" rating and boosted their price target for the stock from C$38.00 to C$50.00 in a research report on Thursday, March 12th. National Bank Financial boosted their price target on First Quantum Minerals from C$42.50 to C$47.00 in a research report on Thursday, January 29th. Morgan Stanley dropped their price target on First Quantum Minerals from C$40.00 to C$37.70 in a research report on Thursday, April 9th. Finally, Canadian Imperial Bank of Commerce boosted their price target on First Quantum Minerals from C$36.00 to C$46.00 in a research report on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of C$41.35.

First Quantum Minerals Trading Down 0.9%

Shares of FM stock opened at C$39.34 on Tuesday. The company has a debt-to-equity ratio of 52.92, a current ratio of 1.42 and a quick ratio of 1.41. The company has a market cap of C$32.58 billion, a price-to-earnings ratio of -1,311.33, a PEG ratio of -1.28 and a beta of 1.50. The stock has a 50 day simple moving average of C$35.61 and a 200-day simple moving average of C$34.67. First Quantum Minerals has a 1-year low of C$15.59 and a 1-year high of C$45.17.

About First Quantum Minerals

First Quantum is engaged in the production of copper, nickel and gold, and related activities including exploration and development. The Company has operating mines located in Zambia, Türkiye and Mauritania. The Company's Cobre Panamá mine was placed into a phase of Preservation and Safe Management in November 2023. The Company's Ravensthorpe mine was placed into a care and maintenance process in May 2024. The Company is progressing the Taca Taca copper-gold-molybdenum project in Argentina and is exploring La Granja and the Haquira copper deposits in Peru.

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