Southern Copper (NYSE:SCCO) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised its target price to $160 (from $155) but kept an "underweight" rating, noting the target implies about a 14.4% downside from the stock's current level.
• Analyst consensus is negative — with 2 Buys, 3 Holds and 8 Sells and a MarketBeat consensus rating of "Reduce" and an average target of $139.68, well below the stock's ~ $187 trading level.
• Southern Copper recently reported an EPS beat ($1.55 vs. $1.54) and strong profitability (net margin 32.3%, ROE 41.97%), but insiders have sold ~9,526 shares worth about $1.99M in the past three months.

Southern Copper (NYSE:SCCO - Get Free Report) had its target price hoisted by Morgan Stanley from $155.00 to $160.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has an "underweight" rating on the basic materials company's stock. Morgan Stanley's target price would suggest a potential downside of 14.38% from the stock's current price.

A number of other brokerages have also recently issued reports on SCCO. Wall Street Zen upgraded Southern Copper from a "hold" rating to a "buy" rating in a report on Saturday, March 21st. Bank of America cut Southern Copper from a "neutral" rating to an "underperform" rating and boosted their target price for the stock from $162.00 to $175.00 in a report on Thursday, February 26th. The Goldman Sachs Group reiterated a "sell" rating and set a $127.91 target price on shares of Southern Copper in a report on Wednesday, January 14th. Wells Fargo & Company set a $190.38 target price on Southern Copper and gave the stock an "equal weight" rating in a report on Thursday, January 29th. Finally, JPMorgan Chase & Co. reiterated an "underweight" rating and set a $116.51 target price (down from $118.49) on shares of Southern Copper in a report on Friday, January 23rd. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and eight have issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $139.68.

Southern Copper Trading Up 7.4%

NYSE SCCO opened at $186.87 on Thursday. Southern Copper has a 12 month low of $74.87 and a 12 month high of $223.88. The company has a 50-day moving average of $188.22 and a 200-day moving average of $157.68. 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 company has a market cap of $153.06 billion, a P/E ratio of 35.13, a P/E/G ratio of 1.84 and a beta of 1.16.

Southern Copper (NYSE:SCCO - Get Free Report) last posted 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 net margin of 32.30% and a return on equity of 41.97%. The company had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.73 billion. During the same quarter in the prior year, the company posted $0.98 EPS. As a group, equities analysts predict that Southern Copper will post 4.66 earnings per share for the current year.

Insider Activity at Southern Copper

In related news, Director Lerdo De Tejada Leon Contreras sold 9,326 shares of the company's stock in a transaction that occurred 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 legal filing with the SEC, which is accessible through this hyperlink. Also, Director Bonilla Luis Miguel Palomino sold 193 shares of the company's stock in a transaction that occurred on Friday, March 13th. The shares were 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 represents a 10.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 9,526 shares of company stock worth $1,989,373. Corporate insiders own 0.07% of the company's stock.

Institutional Investors Weigh In On Southern Copper

Large investors have recently added to or reduced their stakes in the stock. SHP Wealth Management acquired a new stake in Southern Copper in the fourth quarter worth $25,000. Lloyd Advisory Services LLC. acquired a new stake in Southern Copper in the fourth quarter worth $29,000. Virtus Advisers LLC acquired a new stake in Southern Copper in the fourth quarter worth $29,000. Godfrey Financial Associates Inc. acquired a new stake in Southern Copper in the fourth quarter worth $30,000. Finally, Hopwood Financial Services Inc. acquired a new stake in Southern Copper in the third quarter worth $25,000. 7.94% of the stock is owned by institutional investors and hedge funds.

Southern Copper Company Profile

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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