Teck Resources stock price target lowered to $48 at Benchmark on QB issues

Published 28/07/2025, 14:30
Teck Resources stock price target lowered to $48 at Benchmark on QB issues
Investing.com - Benchmark lowered its price target on Teck Resources Ltd (NYSE:TECK) to $48.00 from $55.00 on Monday, while maintaining a Buy rating on the stock following the company’s second-quarter results. The stock, which has declined over 13% in the past week, is currently trading below its InvestingPro Fair Value, with technical indicators suggesting oversold conditions.The mining company reported second-quarter adjusted EBITDA of C$722 million, slightly below the consensus estimate of C$730 million, as positive zinc segment performance was offset by lower total copper sales. Despite recent challenges, Teck maintains strong fundamentals with a healthy current ratio of 3.47 and impressive year-over-year revenue growth of 37%. InvestingPro analysis reveals 13 additional key insights about Teck’s financial health and growth prospects.Teck Resources faced operational challenges at its QB copper project, where development work at the Tailings Management Facility (TMF) limited online time. Sales also trailed production due to high seas and a previously disclosed shiploader outage, prompting the company to lower its full-year production guidance for QB.Despite these setbacks, Teck’s management maintains that the company can achieve design rates by year-end and does not currently anticipate any impact on targets for 2026 and beyond.The company’s board has sanctioned the Highland Valley Copper Mine Life Extension, a brownfield project expected to produce an average of 132,000 metric tons of copper annually from 2028-2046 at a cost of C$2.1 billion to C$2.4 billion, supporting Teck’s strategy to double copper production by the end of the decade.In other recent news, Teck Resources reported second-quarter revenue of CAD 2,023 million, with an adjusted EBITDA of CAD 722 million. The company produced 109,100 tonnes of copper during this period. Despite these figures, Teck Resources faced several downgrades from analysts. B.Riley downgraded the company from Buy to Neutral, citing operational challenges at the Quebrada Blanca mine and a reduction in 2025 copper and molybdenum production guidance. Similarly, JPMorgan lowered its rating from Overweight to Neutral due to concerns about the QB2 project ramp-up timeline, reducing its FY25/26 EBITDA estimates by 6% and 4%, respectively. Jefferies also lowered its price target while maintaining a Buy rating, following a second-quarter EBITDA that missed expectations. Raymond James adjusted its price target, maintaining an Outperform rating, after Teck announced the sanctioning of the Highland Valley Copper Mine Life Extension project. These developments reflect ongoing challenges and strategic decisions impacting Teck Resources.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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