Morgan Stanley Note Vancouver-based Teck Resources Ltd. is among Morgan Stanley’s top picks in the global mining sector.
Analyst Carlos De Alba wrote,
“While mining equities’ recent volatility may continue a bit longer, we expect the sector to resume its outperformance, similar to what happened in late 2004, supported by strong balance sheets and attractive valuations, combined with a strong global capex recovery leading to robust global growth … Teck offers growing exposure to copper, and a substantial long-term expansion in volumes and EBITDA. Near term, market uncertainty related to the Covid- 19 outbreak, political outlook in Chile and Peru, and rising leverage may weigh on the stock, but Teck has good liquidity and we see long-term value in its asset base.”
Mr. De Alba’s price target (33.90 USD) indicates 34-per-cent upside for the stock.