Morgan Stanley analyst Carlos De Alba upgraded Southern Copper (SCCO) to Overweight from Equal Weight with a $54 price target. The analyst expects Southern Copper to generate more attributable free cash flow and return more cash to shareholders than Freeport-McMoRan (FCX), despite being a smaller company. Southern Copper is discounting a lower copper price and trading at a discount to Freeport, says the analyst. He believes that as the lower cost producer, Southern Copper is well positioned to outperform Freeport amid lower copper prices. The offers attractive upside and a “compelling risk-reward profile, with a bull to bear skew over 2:1,” writes De Alba.