UPDATE: JP Morgan Downgrades Southern Copper Corporation to Neutral on Dividend Outlook
JP Morgan downgraded Southern Copper Corporation (NYSE: SCCO) from Overweight to Neutral and maintained the $41.50 price target
JP Morgan noted, "We are downgrading SCCO shares to N from OW as we believe the valuation appears full after the recent 24% run since mid-November, with the dividend announcement being a catalyst as it is likely to disappoint investors. In our view, investors see SCCO as a growth story with dividend yield, especially after the recent $1.5B bond offering, but the rather cautious dividend payout should serve a minor blow to it. We are trimming down our dividend yield expectations for SCCO to 3.8% and 4.9%, vs. 5.5% and 7.1%, respectively."
Southern Copper Corporation closed at $41.25 on Friday.
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