Southern Copper Co. (NYSE:SCCO), a leading mining and exploration company, has recently garnered attention from seven research firms, resulting in an average recommendation of “Reduce,” according to Bloomberg Ratings. The varying opinions of these firms have led to three sell recommendations, three hold recommendations, and one buy recommendation for the company. Additionally, recent data reveals that the average twelve-month target price among brokerages stands at $62.86.
On Thursday, April 27th, Southern Copper (NYSE:SCCO) released its quarterly earnings report, shedding light on its financial performance. The company showcased significant progress by reporting earnings per share (EPS) of $1.05 for the quarter – surpassing market expectations by $0.01. Such positive results indicate the company’s ability to navigate challenging times successfully.
Southern Copper not only showcased impressive EPS but also demonstrated an enviable return on equity (ROE) of 33.71% and a net margin of 26.46% during this period. These figures signify the efficiency with which Southern Copper conducts its operations.
The firm’s revenue during the quarter peaked at $2.79 billion compared to the consensus estimate of $2.72 billion, exceeding expectations once again. This robust revenue stream suggests that Southern Copper continues to thrive in a highly competitive market.
Looking ahead, equities research analysts anticipate that Southern Copper will post 3.76 earnings per share for the current fiscal year – further contributing to its positive growth trajectory.
As a corporation that specializes in mining, exploring, smelting, and refining copper and other minerals across Peru, Mexico, Argentina Ecuador, and Chile; Southern Copper Corporation is well-positioned within numerous markets around the world.
With their expertise in mining and milling copper ore and producing copper concentrates alongside molybdenum concentrates through flotation processes; Southern Copper excels in obtaining valuable resources efficiently.
Moreover, their proficiency extends beyond mere extraction. The company is involved in smelting copper concentrates, generating blister and anode copper, and refining anode copper to produce high-quality copper cathodes. These refined products serve as essential components within various industries.
In addition to their remarkable accomplishments with copper, Southern Copper also engages in the production of molybdenum concentrate and sulfuric acid. Their dedication to producing refined silver, gold, and other materials further highlights the diversified nature of their operations.
It is worth mentioning that Southern Copper’s prowess extends beyond mining and refining copper-related products. The company also exhibits exceptional expertise in mining and processing of zinc, copper, molybdenum, silver, gold, and lead – illustrating their prowess in multiple arenas.
Southern Copper Corporation continues to thrive amid a competitive market environment. With its comprehensive range of activities spanning across five countries in South America, it has established itself as a key player in the mining industry.
Investors are taking note of Southern Copper’s strong financial performance together with its impressive capabilities in leveraging natural resources effectively. However, individual investors should exercise caution when interpreting diverse recommendations from research firms for making investment decisions.
As we move forward into the second half of 2023, it will be intriguing to observe how Southern Copper Co. (NYSE:SCCO) tackles operational challenges while maintaining sustainable growth amidst fluctuating global economic conditions.
Southern Copper Corporation
SCCO
Strong Buy
Updated on: 05/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Buy
Southern Copper: A Prominent Mining Player in South America with Growth Potential
Southern Copper Corporation (NYSE:SCCO) has been receiving attention from various research firms, each offering their own perspective on the company’s performance and potential. Barclays recently increased its price objective on SCCO from $53.00 to $64.00, giving the company an “equal weight” rating in a research note released on April 21st. Similarly, Deutsche Bank Aktiengesellschaft raised its price target on SCCO from $55.00 to $56.00 in a research note dated May 3rd.
One notable coverage came from StockNews.com, which assumed coverage on Southern Copper on May 18th and issued a “buy” rating for the company. Morgan Stanley also demonstrated confidence in Southern Copper by raising its target price from $67.00 to $74.00 in a research note published on June 21st.
However, not all research firms were as positive about Southern Copper’s prospects. The Goldman Sachs Group downgraded SCCO from a “neutral” rating to a “sell” rating, albeit with a raised target price of $66.00 compared to their initial assessment of $65.00.
As of July 23, 2023, shares of Southern Copper opened at $78.37 on the New York Stock Exchange (NYSE). The company has experienced significant volatility over the past year, with a low of $42.42 and a high of $82.05 during that period.
With a market capitalization of approximately $60.59 billion and a price-to-earnings ratio of 22.72, Southern Copper operates with significant financial strength within its sector. The company has also demonstrated resilience during uncertain market conditions with its attractive debt-to-equity ratio of 0.76.
Southern Copper’s core operations span across Peru, Mexico, Argentina, Ecuador, and Chile where they mine, explore, smelt, and refine copper and other minerals including molybdenum, zinc, silver, gold, and lead. Their operations involve the extraction of copper ore for processing into copper and molybdenum concentrates, smelting of copper concentrates to produce blister and anode copper, refining of anode copper to produce copper cathodes, and the production of other valuable materials such as sulfuric acid.
In terms of recent insider activities, Director Bonilla Luis Miguel Palomino sold 500 shares on June 12th at an average price of $70.21. Following this transaction, the director now holds 5,514 shares valued at approximately $387,137.94. Overall insider selling within the last ninety days amounted to 1,500 shares totaling $113,840. Currently, company insiders own 0.08% of Southern Copper’s outstanding stock.
Investment activity by hedge funds indicates a positive sentiment towards Southern Copper. BlackRock Inc., for instance, increased its stake in the company by 756,555 shares during the first quarter. Price T Rowe Associates Inc. MD acquired an additional 2,789,376 shares during the second quarter while Goldman Sachs Group Inc. purchased an extra 835,044 shares in Q1.
Additionally,Mawer Investment Management Ltd.’s position grew significantly with the acquisition of 2,436,727 additional shares during Q1.Finally , abrdn plc notably increased its ownership by adding 1 ,551 ,189 more SCCO shares during Q1.Regarding institutional investment overviews and holdings within Southern Copper amounts to contribute around 7.74% presently.
Despite diverse opinions from research firms and varying insider actions within Southern Copper Corporation (NYSE:SCCO), it remains a prominent player in the mining industry across several countries in South America.The continual operational growth coupled with favorable market conditions positions SCCO as a compelling investment opportunity for shareholders looking for growth potential within the basic materials sector.
Discussion about this post