UBS upgrades AURUPDATE 1-UBS raises price targets for Canadian base metal firms
(Recasts, adds details, table)
March 29 (Reuters) - UBS said it has revised targets for mid-tier Canadian base metal producers to reflect increased potential for merger and acquisition activity.
The brokerage said recent acquisition activity into North America may have increased the scarcity premium for copper and nickel base metal producers and also the rationale for mid-tier consolidation.
It changed its ratings on intermediate copper producer First Quantum Minerals to "buy" from "neutral" and for nickel producer FNX Mining Co. Inc. to "neutral" from "buy".
The brokerage raised FNX Mining's price target to Canadian $28.000 from C$24.00 and for First Quantum Minerals' target to C$100.00 from C$70.00.
UBS raised the price targets of the following Canadian mining companies but kept their ratings unchanged.
Co. Name Price target Price target
(Current) (Prior)
Aur Resources C$29.00 C$24.50
HudBay Minerals Inc. C$29.00 C$27.50
Inmet Mining Corp. C$75.00 C$68.00
Lundin Mining Corp. C$16.00 C$15.00
Dynatec Corp. C$4.00 C$3.60
Rio Narcea Gold Mines Ltd. C$5.25 C$4.75