Teck Resources stock price target lowered to Cdn$63 by Raymond James

Published 24/07/2025, 21:12
Teck Resources stock price target lowered to Cdn$63 by Raymond James

Investing.com - Raymond (NSE:RYMD) James has reduced its price target on Teck Resources Ltd (TSX:TECK-B) (NYSE:TECK) to Cdn$63.00 from Cdn$71.00 while maintaining an Outperform rating on the stock. The $17.7 billion mining company, which InvestingPro analysis shows is currently trading near Fair Value, has seen its shares decline about 13% over the past year despite maintaining strong financial health metrics.

The firm’s adjustment comes as Teck Resources announced on July 23, 2025, that it has sanctioned the construction of the Highland Valley Copper Mine Life Extension (HVC MLE) project following the issuance of required permits in June.

The HVC MLE project will extend the mine’s life from 2028 to 2046, with average copper production of 132 kilotonnes per year over the life of mine, according to Raymond James.

Capital expenditure for the HVC MLE project is estimated between $2.1-2.4 billion and is expected to be spent between 2025-2028, with project spending in the second half of 2025 reflected in Teck’s revised 2025 capital expenditure guidance.

The company is also advancing other projects, including debottlenecking at QB with a permit application on track for submission in the second half of 2025, while the Zafranal project remains on schedule for a potential sanction decision in late 2025, and an expected feasibility study completion for San Nicolás in the fourth quarter of 2025.

In other recent news, Teck Resources reported second-quarter revenue of CAD 2,023 million, along with an adjusted EBITDA of CAD 722 million. The company also produced 109,100 tonnes of copper during this period. Meanwhile, Desjardins downgraded Teck Resources from Buy to Hold, citing concerns over production guidance at the Quebrada Blanca copper mine. Desjardins expects the mine to produce 218,500 tonnes of copper this year, which is below the company’s guidance of 230,000-270,000 tonnes. Morgan Stanley (NYSE:MS) also downgraded Teck Resources from Overweight to Equalweight, noting that the stock now trades in-line with its copper-focused peers. Additionally, Teck Resources announced a month-long shutdown at its Carmen de Andacollo Operations in Chile due to a mechanical issue with the SAG mill. Despite this, the company does not foresee any significant impact on its 2025 copper production forecast. There was also a temporary outage at the Quebrada Blanca port facility, but operations and shipments continue through alternative ports.

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