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Research Alert: CFRA Maintains Hold Opinion On Shares Of Southern Copper Corporation
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Southern Copper Corporation
May 1, 2026 8:22 AM

10:40 AM EDT, 05/01/2026 (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 by $31 to $190, on an EV/EBITDA of 13.5x our 2027 EBITDA estimate, above SCCO's three-year average forward EV/EBITDA of 12.8x and peers' average of 8.0x. We trim our 2026 EPS estimate by $1.73 to $6.81 and 2027 EPS forecast by $2.55 to $7.01. SCCO maintains its target to reach 1.6M tons of annual copper production while advancing its $20.5B+ capital investment program, with the Tia Maria project (120kt/year capacity) expected online in 3Q27. However, Q1 copper production declined 4.0% Y/Y due to lower ore grades at Peruvian operations, though management expects grades to recover by late 2026. SCCO's leadership transition following the passing of CEO Oscar Gonzalez Rocha adds some uncertainty, though new CEO Leonardo Contreras brings strong operational experience. SCCO's premium valuation reflects its best-in-class cost structure, extensive reserves, and growth pipeline, but we see limited upside at current levels given production headwinds and execution risks on major projects.

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