Hudbay Minerals stock initiated with Buy rating at Goldman Sachs

Investing.com - Goldman Sachs initiated coverage on Hudbay Minerals (NYSE:HBM) (TSX:HBM) with a Buy rating and a price target of C$19.30, implying 10% upside potential. The stock, currently trading near its 52-week high, has delivered an impressive 87% return over the past year according to InvestingPro data.

The firm views Hudbay as offering investors exposure to gold, which represents 34% of average 2025-27 estimated revenues, as well as copper production in stable jurisdictions including Canada and Peru. With a market capitalization of $5.04 billion and revenue growth of 8.31% in the last twelve months, the company shows strong operational momentum.

Goldman Sachs highlighted Hudbay’s significant growth options in the United States, with its Copper World project estimated to equal 20% of market capitalization at Hudbay’s stake, potentially enabling 46% copper growth by 2029.

The investment bank noted that Hudbay is well-positioned within the cash cost curve and provides an attractive free cash flow carry of 38% cumulatively based on Goldman’s 2026-28 estimates.

This free cash flow improvement is expected as Copper Mountain’s contribution turns positive, even before any Copper World project contributions are factored in.

In other recent news, Hudbay Minerals Inc. reported its Q2 2025 earnings, surpassing analyst expectations with an adjusted earnings per share (EPS) of $0.19, compared to the forecasted $0.11. The company also achieved revenue of $536.4 million, slightly above the anticipated $534.39 million. This performance indicates a 72.73% surprise in EPS, highlighting the company’s strong financial results. Additionally, RBC Capital has raised its price target for Hudbay Minerals to C$19.00 from C$17.00, maintaining an Outperform rating. This adjustment follows Hudbay’s announcement of a partnership with Mitsubishi Corporation, which will acquire a 30% stake in Hudbay’s Copper World project in Arizona. Furthermore, Hudbay Minerals has appointed Laura Tyler, a former BHP executive, to its Board of Directors. Tyler’s extensive experience in the mining industry is expected to bring valuable technical and operational expertise to the board. These recent developments reflect significant strategic and operational advancements for Hudbay Minerals.

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