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Research Alert: CFRA Maintains Buy Opinion On Shares Of Southern Copper Corporation
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Southern Copper Corporation
May 25, 2025 9:36 PM

01:15 AM EDT, 04/28/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target price by $1 to $109, as we value SCCO at an EV/EBITDA of 11.2x our 2026 EBITDA estimate, in line with SCCO's three-year avg. forward EV/EBITDA. We lower our 2025 EPS estimate by $0.42 to $4.44 and our 2026 EPS forecast by $0.46 to $4.89. SCCO posts Q1 EPS of $1.19 vs. $0.92, $0.05 above consensus, driven by a top-line beat of 5.7%. SCCO's strong results were driven by higher sales volumes across its product portfolio and improved metal prices. Net sales climbed 20% Y/Y to $3,121M, while adjusted EBITDA rose 23% Y/Y to $1,746M, reflecting the company's operational efficiency and cost management efforts. Q1 copper production remained stable at 240,226 tons, with growth at Buenavista and Toquepala offsetting declines at other operations. Q1 saw significant growth in its by-product production, with zinc output surging 49% Y/Y, driven by the new Buenavista zinc concentrator. Molybdenum and silver output also rose by 8.5% Y/Y and 14% Y/Y, respectively.

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