CA - Teck Resources: We Still See Potential For Further Gains
2024-05-01 23:12:10 ET
Summary
- Teck Resources has had a spectacular run since we initiated our "Strong Buy". In just three months, TECK has achieved a total return of 23.2%.
- Our base case scenario sees copper prices matching previous bull markets. This translates into potentially another 40% gain for copper prices to US$6.50/pound.
- TECK is also among the world's most attractive pure-play copper producers and would be a decent acquisition target.
- Given the upside potential for copper prices, we think TECK's Forward P/E multiple of 19.3x is undemanding.
- We reiterate our "Strong Buy" rating on TECK.
Teck Resources ( TECK ) has had a spectacular run since we initiated our "Strong Buy" rating on 31 January 2024 . In just three months, TECK has achieved a total return of 23.2%, far exceeding the 4.3% gain on the S&P 500 Index (SP500) over the same period....
Teck Resources: We Still See Potential For Further Gains