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Investing.com - Wells Fargo (NYSE:WFC) has reiterated its Overweight rating and $101.00 price target on Teck Resources Ltd (NYSE:TECK), significantly above the current trading price of $33.20. According to InvestingPro data, analysts’ price targets range from $33.90 to $44.64, with a consensus recommendation of 2.17 (Buy).
The firm maintains its positive outlook on the mining company despite current trading patterns suggesting market skepticism about the stock’s potential. The stock is currently trading about 39% below its 52-week high of $54.13, while maintaining strong fundamentals with a current ratio of 3.47x, indicating robust liquidity.
Wells Fargo believes Teck Resources presents "one of the most attractive risk/rewards" in its coverage universe at current price levels.
The analysis suggests that market concerns about Teck’s performance may not be justified when examined from both "mechanistic" and "empirical" perspectives.
The firm’s analyst team, led by Tiago Fauth, continues to express confidence in Teck Resources’ fundamentals despite prevailing market sentiment.
In other recent news, Teck Resources reported second-quarter adjusted EBITDA of C$722 million, slightly below the consensus estimate of C$730 million. The company’s performance was impacted by lower copper sales, despite positive results in the zinc segment. Following these results, Benchmark lowered its price target for Teck Resources to $48, while maintaining a Buy rating. B.Riley downgraded the stock from Buy to Neutral, reducing its price target to C$61 due to operational challenges at the Quebrada Blanca (QB) mine and revised production guidance for 2025.
JPMorgan also downgraded Teck Resources from Overweight to Neutral, citing concerns about the QB2 project’s ramp-up timeline and adjusted its FY25/26 EBITDA estimates downwards. Jefferies reduced its price target to C$60, maintaining a Buy rating, as Teck’s EBITDA missed expectations partly due to lower copper sales volumes. Raymond (NSE:RYMD) James decreased its price target to Cdn$63, maintaining an Outperform rating, following the announcement of the Highland Valley Copper Mine Life Extension project. These developments reflect adjustments by analysts in response to Teck’s operational and production challenges.
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