Deutsche Bank analyst Abhi Agarwal downgraded Southern Copper to Sell from Hold with a $45 price target. The shares have outperformed over the last one month, driven by a rally in copper prices and the relatively in-line Q3 report, Agarwal tells investors in a research note. However, Southern Copper’s updated guidance for 2023 onwards reflects that the company “is struggling to get its operations on track” after the COVID-related disruptions, says the analyst. The shares are trading at a premium to peers on spot, which looks unjustified given issues around the company’s growth projects, contends Agarwal.
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