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Investing.com - Teck Resources Ltd (NYSE:TECK), with a market capitalization of $20.91 billion, maintained its Buy rating and $48.00 price target at Benchmark following the company’s third-quarter earnings beat.
Teck reported adjusted EBITDA of C$1,171 million for the third quarter, exceeding the consensus estimate of C$1,039 million. The outperformance was attributed to strong zinc segment sales, favorable unit costs, and C$108 million in positive pricing adjustments. According to InvestingPro data, the company has demonstrated robust revenue growth of 37.28% over the last twelve months, with 7 analysts recently revising their earnings estimates upward.
The company updated its medium-term guidance to incorporate more conservative throughput and recovery rates at its Quebrada Blanca (QB) operation, where production will remain constrained by Tailings Management Facility development through 2026. Despite these near-term challenges, management maintains that the operation should still achieve originally designed rates in the longer term. With a strong current ratio of 3.47 and an overall financial health score of "GOOD" according to InvestingPro, the company appears well-positioned to navigate these operational adjustments.
Teck highlighted the proposed merger with Anglo American, noting that significant time was spent by both companies to arrive at the estimated $1.4 billion of revenue synergies at QB/Collahuasi. This figure was validated by external advisors, according to management statements.
Benchmark believes the merger has potential for clear value creation and a favorable chance to receive shareholder and regulatory approval, supporting its maintained Buy rating and $48 price target on Teck Resources.
In other recent news, Teck Resources reported its third-quarter earnings for 2025, significantly surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.76, which was well above the forecasted $0.53, marking a 43.4% surprise. Revenue also exceeded projections, reaching $3.38 billion compared to the anticipated $2.92 billion, a 15.75% increase. In addition to its earnings report, Teck Resources announced a dividend of $0.125 per share on its Class A common shares and Class B subordinate voting shares. This dividend is set to be paid on December 31, 2025, to shareholders recorded by December 15, 2025. These developments reflect the company’s strong financial performance in the recent quarter.
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