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Southern Copper -2% despite J.P. Morgan upgrade

Published 12/06/2018, 11:05 AM
© Reuters.  Southern Copper -2% despite J.P. Morgan upgrade
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  • Southern (NYSE:SO) Copper (SCCO -2.3%) is lower after winning an upgrade from J.P. Morgan to Neutral from Underweight but with a price target cut to $34.50 from $47 on the back of increased political risks in Mexico and lower copper prices.
  • JPM's head of Brazil equity research Rodlfo Angele notes SCCO shares are down 31% YTD and says the current valuation already is pricing in the weaker environment going forward.
  • The firm remains overweight on Grupo Mexico (OTCPK:GMBXF), seeing the current 44% discount to net asset value as excessive vs. the company’s historical average of 25%.
  • Now read: 39 Of 60 Basic Materials WallStars Declare 'Safer' Dividends For November


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