TCKRF - Teck Resources: Our Top Pick To Ride The Copper Boom

2024-01-31 14:10:00 ET

Summary

• Copper has been one of our favourite themes since October 2022 when we initiated our bullish view on the commodity and the Global X Copper Miners ETF (COPX).
• But there are even better opportunities to further enhance alpha and to capitalize on our bullish copper view fully. Teck Resources (TECK) currently presents one of the most compelling investment opportunities in our view.
• TECK is our favourite pick mainly due to three factors: a copper demand-supply gap, compelling valuations, and share buybacks.
• Overall, we view TECK's strategic overhaul as greatly beneficial for shareholders while the stock remains underappreciated and undervalued.
• We initiate our coverage of Teck Resources with a "Strong Buy" rating.

The relentless rally in U.S. equities that began in October 2023 is increasingly leaving pessimistic investors in a state of "FOMO" (a modern acronym for "fear of missing out"). Even though the low-hanging fruits for alpha are becoming increasingly difficult to find, we still see opportunities for investors who are late to the rally to play catch-up by investing in laggard themes . ...

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