Market Overview

UPDATE: J.P. Morgan Upgrades Compania de Minas Buenaventura SAA on Valuation

Share:
Related BVN
Mid-Morning Market Update: Markets Open Higher; Hertz Issues Weak Outlook
Friday's After-Hours Movers: Energy, Pharmaceuticals Active
Peru ETF Up 50% This Year As Bank, Some Miners Rally (Investor's Business Daily)

In a report published Monday, J.P. Morgan analyst John Bridges upgraded the rating on Compania de Minas Buenaventura SAA (NYSE: BVN) from Neutral to Overweight, but lowered the price target from $22.00 to $19.00.

In the report, J.P. Morgan noted, “We feel the primary reason for the underperformance of BVN relative to the precious metals sector in 2013 has been lower interest in emerging market investments, uncertainty with the outlook for Yanacocha (44% owned) and problems at its self managed mines. We believe the operational problems at Buenaventura's own mines are short term and that there are new chapters to the Yanacocha story. We feel that one or more of the development options at Yanacocha will be more attractive for the regional government compared with mine closure, which would significantly impact the local economy around Cajamarca. We expect Orcopampa to return to higher grade ores early in 2014 and savings from closing smaller underperforming mines. Even using conservative base metal multiples, we feel BVN offers value and we are upgrading our rating from N to OW with a price target of $19 by 2014 year end.”

Compania de Minas Buenaventura SAA closed on Friday at $11.76.

Latest Ratings for BVN

DateFirmActionFromTo
May 2016HSBCUpgradesHoldBuy
Apr 2016Morgan StanleyDowngradesOverweightEqual-weight
Apr 2016HSBCDowngradesBuyHold

View More Analyst Ratings for BVN
View the Latest Analyst Ratings

Posted-In: J.P. Morgan John BridgesAnalyst Color Upgrades Analyst Ratings

 

Related Articles (BVN)

View Comments and Join the Discussion!