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On Monday, Benchmark analyst Nathan Martin maintained a Buy rating on Teck Resources Ltd (NYSE:TECK) with a steady price target of $55.00. Despite Teck Resources reporting a 4Q adjusted EBITDA of C$835M, which fell short of the expected C$909M, the firm’s outlook remains positive. According to InvestingPro data, the company maintains a Fair financial health rating and analysts expect net income growth this year. The company reaffirmed all its full-year 2025 guidance targets that were previously announced in January.
Teck Resources has indicated that the tariffs recently imposed by the US are not anticipated to significantly affect its operations. The company’s QB operation, which underwent an extended shutdown in January for maintenance and tailings lifts, has resumed normal functioning. Management is confident that no further interruptions beyond the standard quarterly maintenance will occur for the rest of 2025.
The company also expects net cash unit costs at QB to improve significantly, projecting a decrease to $1.80-$2.15/lb from the previous $2.72/lb. This improvement is attributed to ongoing cost discipline, higher copper production, and increased byproduct credits as the molybdenum plant ramps up.
Regarding shareholder returns, Teck Resources is likely to continue its share buyback program at a high level, with C$1.8 billion in authorization remaining as of February 19. The company is also actively evaluating low-capital intensity, organic growth projects within its portfolio and may make sanction decisions within the current year.
In other recent news, Teck Resources Ltd has been in the spotlight due to several significant developments. Jefferies has reiterated its Buy rating for Teck Resources, maintaining a price target of Cdn$70. This comes as the company successfully achieved its production targets for the fourth quarter and operated its QB2 project at full capacity by year-end. Despite this progress, Teck Resources has lowered its 2025 production guidance, particularly in zinc production, which has led Jefferies to adjust its financial model while still expressing confidence in the company’s potential.
Conversely, National Bank Financial downgraded Teck Resources from ’Outperform’ to ’Sector Perform’, reducing the price target to C$77.50. This downgrade follows the company’s sale of its coal business and ongoing share buybacks, with a focus shifting toward significant copper production projects slated for 2025. National Bank Financial expressed caution regarding Teck’s future financial strategy, highlighting potential challenges in maintaining its share repurchase program while investing in growth initiatives.
Additionally, Teck Resources was among mining companies that responded positively to recent policy shifts in China, which boosted stocks with exposure to the country. The policy changes include more accommodating monetary and fiscal measures, aiming to stabilize property and stock markets and stimulate domestic demand. These developments have collectively influenced investor sentiment and strategic outlooks for Teck Resources in the near term.
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