RE:Upgrade Hudbay Canaccord Analyts who follow both companies see this as a done deal. Looks good long term.
RBC Capital Markets said Hudbay's acquisition of Copper Mountain adds scale and would boost the company's copper production by 36% to about 150,000 tonnes per year.
Optimizations and an expansion can also add value to Hudbay over time, according to RBC.
"We believe Hudbay can reduce the valuation gap with peers through delivering production growth in Peru this year, integrating Copper Mountain and derisking Copper World," RBC said.
RBC maintained Hudbay's outperform rating and $10 price target.