08:19 AM EDT, 04/19/2024 (MT Newswires) -- RBC Capital Markets on Friday outlined its insights for the materials sector in the second-quarter edition of its Canadian Equity Chart Book.

RBC remains upbeat on copper equities amid a positive multi-year outlook for copper driven by tight supply and growing demand from electrification.

RBC said its preferred copper producers include Teck Resources Ltd. (TECK-B.TO), Ivanhoe Mines ( IVPAF ) , Capstone Copper ( CSCCF ) and Hudbay Minerals ( HBM ) .

Meanwhile, RBC said the performance of gold equities has lagged the surge in gold prices due to higher cost inflation flagged by producers.

RBC said it views gold equity valuations as attractive at current spot prices. It also expects first-quarter financial results for gold equities to reflect seasonal operating weakness.

For the fertilizer sector, RBC said the market is still supported by stable market conditions and constructive fundamentals for the remainder of 2024.

RBC prefers Nutrien ( NTR ) , citing its valuation that is below historical averages as well as its potential to re-rate with a rebound in the retail segment and a renewed focus on cash generation.

RBC also reiterated its positive long-term outlook for the uranium market.

Within its paper, packaging and forest products coverage, RBC said the wood products group offers the most compelling opportunities.