Hudbay Minerals (HBM) - Get Hudbay Minerals Inc. (Canada) Report was rising sharply Tuesday after analysts at Bank of America issued a double upgrade on shares of the Canadian copper miner to buy from underperform.
Bank of America said the company's copper business has "improved greatly," as it raised the price target on the stock to C$12.20 from C$10.60 a share.
"We see a greatly improved outlook for the copper business and BofA is bullish copper prices," Bank of America analyst Lawson Winder wrote in a note to clients. "2022-2023
copper production guidance was better than expected, while copper, gold and silver reserves were more than replaced."
Shares of Hudbay were rising 4.8% to $8 a share Tuesday in New York. Shares were up 4.6% in Toronto.
Copper prices surged Monday after Chile, the world's top copper exporter, closed its borders for the month in order to control a spike in COVID-19 infections.
Chilean citizens and foreign residents are forbidden from entering or leaving the country and all truck drivers are required to present a negative PCR test taken a maximum of 72 hours before entering the country.
Copper prices on Tuesday were falling slightly, down 0.74% to $410.70 a pound on the Comex.
The electric vehicle revolution is expected to result in high demand for copper. Traditional cars contain between 18 and 49 pounds of copper, while plug-in hybrid electric vehicles use 132 pounds of copper and EVs contain 183 pounds per vehicle. A battery electric bus contains more than 800 pounds of copper per vehicle, according to Copper.org.