CIBC Raise Target CIBC’s Bryce Adams raised his target for Ero Copper Corp. ( “neutral”) to $26 from $27, First Quantum Minerals Ltd. ( “neutral”) to $29 from $28 and Lundin Mining Corp. ( “neutral”) to $10.50 from $10. The averages on the Street are $28.27, $35.01 and $11.06, respectively.
“We have revised our commodity price assumptions and expect copper prices to bottom in H2/23 from near-term headwinds of weaker economic data from China and the U.S.,” said Mr. Adams. “In the medium and longer-term, we remain constructive on the red metal. Given this view, we expect to see buying opportunities in copper equities later this year. On average, our H2/23 copper forecast is $3.55/lb, and prices at or below this level can provide investors with attractive entry points ahead of strong supply and demand fundamentals into 2024.
“We fine-tune our FY2023 and FY2024 estimates to $3.72/lb and $3.90/lb from $3.69/lb and $3.75/lb, respectively, and note that this includes prices weakening in H2/23 to Q1/24, and price strengthening for the remainder of 2024. We expect the copper market to be in a slight deficit position from 2023 to 2026. We have taken a copper cautious tone for the last 12 months and make no rating changes at this time. We reiterate our Outperformer ratings on Teck, Capstone and Filo. We remain Neutral on Ero, First Quantum, Lundin and Largo (while tweaking our price targets on ERO, FM and LUN), and are research Restricted on Copper Mountain, Hudbay, Sierra, and Cameco.”