Market Overview

UPDATE: J.P. Morgan Downgrades Thompson Creek Metals on Lower Metal Price Assumptions

Related TC
UPDATE: Deutsche Bank Downgrades Thompson Creek Metals Company As Moly Prices Fall
Mid-Afternoon Market Update: Vivint Solar Dips After Wider-Than-Expected Q3 Loss; Rackspace Shares Spike Higher

In a report published Wednesday, J.P. Morgan analyst Michael F. Gambardella downgraded Thompson Creek Metals (NYSE: TC) from Overweight to Neutral, and removed the $5.00 price target.

In the report, J.P. Morgan noted, “We are downgrading TC to Neutral from Overweight due to lower metal price assumptions for copper, gold and molybdenum. We continue to expect TC's Mt. Milligan project to drive significant earnings growth starting in late 2013, be a low cost copper producer, and create a more diversified asset base, all of which should drive incremental value for the company. However, we move to a Neutral rating on the stock as we expect the company's earnings to hover around breakeven for the rest of 2013 and most of 2014 given our lower moly and gold price forecasts. We would also note that our production forecasts for Mt. Milligan assume no issues with its start-up and that it reaches commercial production by year-end 2013, which could present an additional risk for the company.”

Thompson Creek Metals closed on Tuesday at $2.90.

Latest Ratings for TC

DateFirmActionFromTo
Dec 2014Deutsche BankDowngradesBuyHold
Aug 2014DundeeUpgradesNeutralBuy
Aug 2014Deutsche BankMaintainsBuy

View More Analyst Ratings for TC
View the Latest Analyst Ratings

Posted-In: J.P. Morgan Michael F. GambardellaAnalyst Color Downgrades Analyst Ratings

 

Related Articles (TC)

Around the Web, We're Loving...

Get Benzinga's Newsletters