Time To Book Profits on This NYSE-Listed Copper Mining Major – SCCO
Southern Copper Corporation
Southern Copper Corporation (NYSE: SCCO) is a copper and mineral integrated producer with operations in Peru and Mexico, including mining, smelting, and refining. Copper, molybdenum, zinc, and silver are among the metals it produces. Peruvian activities, Mexican open-pit operations, and Mexican underground mining operations are the company's three segments. Most of its revenue comes from copper sales, with the remainder from non-copper items like molybdenum, silver, zinc, lead, and gold.
Why should Investors Book Profits?
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
SCCO's share price has surged 30.77% in the past six months and is currently leaning towards the higher band of the 52-week range of USD 54.92 to USD 83.29. The stock is currently trading far above its 50 and 200 DMA levels, and its RSI Index is at 59.54, retraced from the overbought zone. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 68.00.
Considering the surge in the stock price in the past six months, leveraged balance sheet, global headwinds, current valuation, and associated risks, we recommend a "Sell" rating on the stock at the current price of USD 76.17, down 0.12% as of March 29, 2022, 6:57 AM PDT.
Three-Year Technical Price Chart (as of March 29, 2022, at 6:57 AM PDT). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.