Southern Copper Corporation (SCCO) faced a significant shift in analyst sentiment as BofA Securities downgraded the stock to “Underperform” on February 26, 2026. This rating change comes with an average price target of $147.40, which signals a notable downside from the current trading price of $215.20. The downgrade raises questions for investors regarding the company’s short- and long-term prospects in the volatile copper market.
Market and Price Action
In recent trading sessions, Southern Copper’s stock has displayed a degree of volatility. As of the latest data, the stock is trading at $215.20, reflecting a decline of $2.52 or approximately 1.17%. The weekly performance has demonstrated a slight decrease, as the stock has hovered close to its 52-week low of $195.82 while trading far below its 52-week high. The stock’s market capitalization stands at approximately $175.69 billion, indicating its stature in the market, though the fluctuating price amidst a trading volume of 634,576 shares—well below the average of 1.82 million—might suggest some investor hesitation. The stock has a beta of 1.071, reinforcing its sensitivity to broader market movements.
Short- and Long-Term Performance
Assessing performance metrics reveals that SCCO has shown commendable returns over various time frames. In the last 30 days, the stock surged by 31.67%, while its quarterly performance delivered a robust 43.48% increase. Year-to-date, the stock has reached an impressive 96.45% rise, shining brightly against a backdrop of mixed market sentiment. Nevertheless, investors should note a weekly volatility of 3.38% and a monthly volatility of 2.96%, indicating that while the long-term trends are positive, short-term fluctuations could introduce risk, reflecting uncertain market conditions.
Earnings and Financials
Southern Copper’s latest earnings release has added another layer of intrigue. The company’s actual earnings per share (EPS) came in at $1.35 for the quarter, exceeding the estimated EPS of $1.26 by approximately 7.14%. This positive surprise further builds on its previous quarter’s EPS performance, where it also surpassed analysts’ expectations, reporting $1.22 against an estimate of $1.11. Such consistency in beating estimates is indicative of the company’s underlying financial strength and its ability to generate value, adding a positive note amidst the broader concerns raised by the recent downgrade.
Analyst and Consensus View
The consensus opinion on Southern Copper has shifted significantly with this downgrade. Of the ten ratings currently on record, zero analysts rate the stock as a “Buy,” while five categorize it as a “Hold” and five as a “Sell.” The new average price target of $147.40 starkly contrasts with the existing trading price, reinforcing the narrative that many analysts anticipate further declines. BofA Securities’ Caio Ribeiro, who issued the downgrade, has set the price target at $175, which indicates a cautious outlook amid the prevailing market dynamics that affect copper prices and mining operations.
Stock Grading and Fundamental View
Southern Copper Corporation holds a Stocks Telegraph Score of 53, a grade that reflects a mixed but cautionary overall health assessment. This score takes into account both its financials and market analysis, suggesting moderate confidence in the firm’s operational capacities but also highlighting possible risks influenced by external environmental factors, such as commodity price fluctuations.
Conclusion
In summary, Southern Copper Corporation presents a compelling case for cautious observation. While recent earnings performance demonstrates strong fundamentals and an ability to exceed expectations, the downgrade to “Underperform” indicates a significant sentiment shift among analysts. The stock is best suited for investors with a moderate risk appetite, particularly those interested in mining and commodities sectors, who are willing to navigate volatility. Potential investors should be vigilant of external pressures, including economic conditions influencing copper prices, and consider these factors carefully before making any investment decisions. Given the recent analyst shift and the broader economic landscape, SCCO remains a stock worth watching, albeit with an eye on associated risks.