Teck Resources Gets a Buy Rating from TD Securities

By Austin Angelo

Yesterday, an analyst has provided a rating update for the Materials sector company, Teck Resources (TSX: TECK.B). Analyst Greg Barnes from TD Securities remains bullish on the stock and has a C$38 price target.

Barnes noted:

“We have adjusted our coal price forecasts for Q2/17, Q3/17, and Q4/17 to reflect the recent weakness in coal pricing and the shift to a spot index- based pricing mechanism. Our estimated index coal prices for Q2/17, Q3/17, and Q4/17 are now US$190/t, US$130/t, and US$130/t, respectively (previously, US$200/t, US$150/t, and US$140/t, respectively). We have maintained our 2018 coal price forecast at US$130/t. These changes have resulted in a decline in our Q2/17 EPS estimate to $1.02/share (from $1.47/share). TD Investment Conclusion We are maintaining our BUY recommendation; our target price has declined to $38.00 (from $40.00).”

According to TipRanks.com, Barnes is ranked 0 out of 5 stars with an average return of -8.6% and a 25.5% success rate. Barnes covers the Basic Materials sector, focusing on stocks such as Newmont Mining Corporation, Teck Resources Limited, and Hudbay Minerals Inc.

Currently, the analyst consensus on Teck Resources is Strong Buy and the average price target is C$39.33, representing a 99.3% upside.

In a report released yesterday, Scotiabank also maintained a Buy rating on the stock with a C$38 price target.

The company has a one year high of C$35.67 and a one year low of C$14.44. Currently, Teck Resources has an average volume of 2.37M.

Teck Resources Ltd. is a diversified resource company, which is engaged in mining and mineral development with business units focused on copper, steelmaking coal, zinc and energy. The company produces specialty metals, which includes germanium and indium. Its activities related to mining and minerals processing including exploration, development, smelting, refining, safety, environmental protection, product stewardship, recycling and research. Teck Resources was founded on September 24, 1951 and is headquartered in Vancouver, Canada.

The company’s shares closed last Friday at $19.73.