Scotia Capital, Opportunistic Takeover." ????The Globe and Mail reports in its Wednesday edition that Scotia Capital analyst Orest Wowkodaw has reaffirmed his "sector "outperform" recommendation for Hudbay Mineral.
The Globe's David Leeder writes that Mr. Wowkodaw gave his share target a 50-cent boost to $10.50.
Analysts on average target the shares at $9.96.
The Globe reports that Mr. Wowkodaw raised his net-asset-value projection for Hudbay Minerals to reflect the preliminary feasibility study results for its 100-per-cent-owned Copper World project in Arizona. Mr. Wowkodaw says in a note: "With improved project economics, including materially lower initial capex and a reduced technical risk profile from the planned deferral of the concentrate leaching circuit, we view the update as positive for the shares.
However, given the company's near-term deleveraging focus and future partner search, we do not anticipate development of Copper World to begin before 2026. ...
Our revised 12-month target is based on a 50/50 weighting of five times our average 2024E-2025 estimated EV/EBITDA and 1.1 times our updated 8-per-cent NAVPS estimate. Given the significant valuation disconnect with peers, we believe Hudbay could be vulnerable to an opportunistic takeover."