GLOBE SAYSThe Globe and Mail reports in its Thursday, April 18, edition that after a "sluggish" start to 2024 for the base metals sector as "commodity markets grappled with mixed fundamental economic data, shifting sentiment, and the typical seasonal slowdown given the Chinese Lunar Week holiday in February," Canaccord Genuity analyst Dalton Baretto thinks commodity-specific fundamentals "appear to have finally become the primary driver of price formation, with the various commodity prices each starting to reflect their specific supply-demand fundamentals.
" The Globe's David Leeder writes that Hudbay Minerals is a top pick for Mr. Baretto. He continues to rate the shares "buy." Mr. Baretto gave his share target a $2.50 boost to $13.
Analysts on average target the shares at $11.42.
Mr. Baretto says in a note, "We believe the projected FCF yield (14 per cent for 2024, 18 per cent for 2025), tailwind from the gold price, ongoing deleveraging, upcoming catalysts at Copper World, and attractive relative valuation should see the shares outperform over the rest of 2024.
" The Globe reported on April 2 that Mr. Baretto had reiterated his "buy" recommendation for Hudbay Minerals. The shares could then be had for $9.72.