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Investing.com - JPMorgan downgraded Teck Resources Ltd (NYSE:TECK) from Overweight to Neutral and lowered its price target to $41.00 from $46.00, citing concerns about the company’s QB2 project ramp-up timeline. The mining giant, with a market capitalization of $17.2 billion and strong financial health score according to InvestingPro, faces scrutiny despite maintaining solid fundamentals with a current ratio of 3.36.
The investment bank reduced its FY25/26 EBITDA estimates by 6% and 4% respectively, reflecting updated guidance and a more conservative outlook for the QB2 ramp at the low end of guidance range.
JPMorgan noted that reaching run-rate levels at QB2 requires multiple factors to align, including TMF upgrades, less downtime, improved grades, consistent throughput, and higher recoveries—some of which are beyond the company’s control, such as weather and transition ore.
The firm indicated it would need to see "multiple quarters of solid execution" before becoming more constructive on the stock, a stance it believes many investors share at this stage.
Teck Resources shares fell 8.7% following the news, compared to the S&P Metals & Mining ETF’s 1.5% decline, with the stock now trading at 3.7x on 2026 spot earnings.
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 produced 109,100 tonnes of copper during this period. Analysts have responded to these developments with varying assessments. Jefferies lowered its price target for Teck Resources to C$60.00 from C$65.00, maintaining a Buy rating, due to the company’s EBITDA miss and lower-than-expected copper sales volumes. Raymond (NSE:RYMD) James also reduced its price target to C$63.00 from C$71.00 but kept an Outperform rating, following Teck’s announcement of the Highland Valley Copper Mine Life Extension project. Desjardins downgraded the stock from Buy to Hold, cutting the price target to C$58.00 from C$72.00, due to concerns about production at the Quebrada Blanca copper mine. Morgan Stanley (NYSE:MS) downgraded Teck Resources from Overweight to Equalweight, adjusting the price target to $44.00 from $42.00, as the stock now trades in-line with its copper-focused peers. These recent developments highlight the diverse perspectives among analysts on Teck Resources’ current performance and future prospects.
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