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Investing.com - UBS downgraded Southern Copper (NYSE:SCCO) from Buy to Neutral on Tuesday, maintaining its price target of $105.00 per share. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, has demonstrated strong financial fundamentals.
The investment bank cited valuation concerns following the stock’s 32% rally since April 2025 lows, significantly outpacing copper’s 13% price increase during the same period.
Southern Copper now trades at approximately 12.5x consensus EV/EBITDA, which UBS notes is broadly in line with the company’s 2023-2024 trading multiple.
UBS expressed concerns about downside risks to copper prices over the next six months due to macroeconomic uncertainty and trade war disruptions, factors that could limit Southern Copper’s upside potential.
The firm acknowledged Southern Copper continues to perform well operationally and expects the company’s second-quarter results to benefit from higher Comex prices on approximately 33% of its volumes.
In other recent news, Southern Copper Corporation reported impressive financial results for the first quarter of 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $1.19, surpassing the forecasted $1.10, and reported revenue of $3.12 billion, which was higher than the projected $2.94 billion. The company also experienced a 29% year-over-year increase in net income, reaching $946 million. Southern Copper held its 2025 Annual Meeting of Stockholders, where shareholders elected nine directors and approved amendments to the company’s Directors’ Stock Award Plan. Additionally, Galaz, Yamazaki, Ruiz Urquiza S.C. was ratified as the company’s independent accountants for 2025. The company announced plans for significant capital investments, including over $600 million in Mexico for 2025. Despite the strong earnings, Southern Copper’s stock experienced a decline in after-hours trading. The company remains optimistic about future growth, with plans to increase copper production and invest in new energy technologies and AI infrastructure.
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