NEW YORK (TheStreet) -- Southern Copper Corp. (SCCO) - Get Report stock is down 0.67% to $29.46 in afternoon trading Thursday after Brean Capital initiated coverage with a "hold" rating and a price target of $32.
"While the name trades at a significantly richer valuation than its peers, we believe this is justified by the company's deep bench of opportunities and strong balance sheet from which to pursue them," Brean Capital analysts said, according to StreetInsider.
The integrated copper producer has numerous board-approved greenfield and brownfield projects embedded within its current outlook and has guided copper production growth of 73% by 2018, from 677 thousand metric tons in 2014, the firm added.
"On the whole, we believe Southern Copper to be one of the better positioned names to not only weather the cyclical downturn in commodity pricing, but also to expand and execute growth opportunities of and during a market recovery," Brean Capital said, StreetInsider reports.
Separately, TheStreet Ratings team rates SOUTHERN COPPER CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOUTHERN COPPER CORP (SCCO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
You can view the full analysis from the report here: SCCO Ratings Report