UPDATE: Cowen and Company Upgrades Southern Copper on Positive Outlook
In a report published Wednesday, Cowen and Company analyst Anthony B. Rizzuto Jr. upgraded the rating on Southern Copper Corp. (NYSE: SCCO) from Underperform to Market Perform, and raised the price target from $24.00 to $30.00.
In the report, Cowen and Company noted, “SCCO is one of the lowest cost copper producers in the world with its portfolio of tier one assets. Through the various investment projects on the horizon (including Buenavista, Toquepala, Tia Maria, Cuajone, etc.), SCCO is aiming to reduce gross and net cash costs to $1.50/lb and $0.90/lb, respectively. In 3Q13, gross cash costs were $1.79/lb and net cash costs were $0.98/lb, declining sequentially by 12.7% and 10.1%, respectively. We view these cost reduction efforts favorably, especially given the recent volatility in copper prices and the uncertainty surrounding the copper market as a result of potential new or expanded supply coming online in the near to medium term.”
Southern Copper Corp. closed on Tuesday at $28.07.
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