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.