UPDATE: J.P. Morgan Downgrades Thompson Creek Metals on Lower Metal Price Assumptions
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
|Jan 2016||Stifel Nicolaus||Terminates|
|Dec 2015||Deutsche Bank||Maintains||Hold|
|Dec 2015||RBC Capital||Downgrades||Sector Perform||Underperform|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.