Deutsche Bank also lowered its price target on the stock to 50 cents from 70 cents, and said it upgraded the company to reflect this "fair valuation."
However, the firm noted it remains wary about Thompson Creek's "strained balance sheet amid weak commodity pricing environment."
On Thursday, the company reported its 2015 second quarter financial results, with earnings of 6 cents per share on revenue of $134.10 million.
Thompson Creek is a mining company based in Littleton, Colo. The company's principal products are copper, gold and molybdenum.
Shares of Thompson Creek are up 0.09% to 54 cents in morning trading on Tuesday. One factor moving the stock up is the rise in gold prices, with gold for December delivery up by 0.12% to $1,105.40 per ounce on the COMEX this morning.
Gold prices are up after the Fed expressed uncertainty yesterday about when it will raise interest rates, The Wall Street Journal reported.
Separately, TheStreet Ratings team rates THOMPSON CREEK METALS CO INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate THOMPSON CREEK METALS CO INC (TC) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 123.0% when compared to the same quarter one year ago, falling from -$39.10 million to -$87.20 million.
- Net operating cash flow has significantly decreased to -$5.30 million or 132.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for THOMPSON CREEK METALS CO INC is currently lower than what is desirable, coming in at 32.52%. Regardless of TC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, TC's net profit margin of -70.89% significantly underperformed when compared to the industry average.
- The debt-to-equity ratio of 1.33 is relatively high when compared with the industry average, suggesting a need for better debt level management. Regardless of the company's weak debt-to-equity ratio, TC has managed to keep a strong quick ratio of 1.87, which demonstrates the ability to cover short-term cash needs.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 79.50%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 78.26% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full analysis from the report here: TC Ratings Report