BMO Capital cuts MAC Cooper stock rating, raises price target

Published 02/06/2025, 23:40
BMO Capital cuts MAC Cooper stock rating, raises price target

On Monday, MAC Cooper stock (NYSE: MTAL), currently trading at $12.24 with a market cap of $1 billion, was downgraded by BMO Capital to Market Perform from Outperform. The analysts also raised the price target to $12.25 from $11.00, reflecting the recent bid made by Harmony (JO:HARJ) Gold.

The decision to adjust the price target comes after the stock occasionally traded through the deal price. According to InvestingPro data, the stock’s RSI suggests overbought territory, with a remarkable 20.59% return over the past week. The analysts noted the possibility of this happening again but do not anticipate a significantly higher price, which contributed to the downgrade.

BMO Capital’s updated model and target price now fully incorporate the outlook from MAC Cooper’s first-quarter activity report. While currently unprofitable with -$1.14 EPS, analysts expect profitability in 2025 with a forecasted EPS of $0.69. The report played a crucial role in shaping the analysts’ revised expectations and rating.

The analysts emphasized that the current bid by Harmony Gold is the primary factor influencing the new price target. They do not foresee substantial upside beyond the revised target, though InvestingPro’s Fair Value analysis suggests the stock may be undervalued. Discover 6 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

MAC Cooper’s stock performance and market conditions will continue to be closely monitored by investors following these updates from BMO Capital. The company maintains a GREAT financial health score of 3.22 according to InvestingPro’s comprehensive analysis.

In other recent news, Harmony Gold has announced its intention to acquire MAC Copper in a $1.03 billion cash deal, enhancing its exposure to copper. The acquisition involves purchasing 100% of MAC Copper’s shares at $12.25 each, which is a 20.7% premium over the company’s previous closing share price. This transaction is expected to be completed by the end of the year, with MAC Copper’s board unanimously recommending shareholders to approve the offer. Additionally, MAC Copper Ltd has released its March 2025 quarterly report through a Form 6-K filing with the SEC, although specific financial details were not disclosed in the press release. The company also published its 2024 Sustainability Report, highlighting its commitment to environmental, social, and governance (ESG) initiatives. The report, filed with the SEC, outlines MAC Copper’s sustainable development efforts over the past year. This document serves as a key communication tool to inform stakeholders about the company’s ESG performance and goals. These developments underscore MAC Copper’s ongoing compliance with SEC regulations and its dedication to responsible business practices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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