Teck Resources (TECK.B) Gets a Buy Rating from B.Riley FBR


Wall Street analyst has provided a review for the Materials company today, but retained the same rating on the stock. B.Riley FBR’s analyst Lucas Pipes reiterates their Buy rating on the shares of Teck Resources (TSX: TECK.B), with a C$46 price target.

Pipes wrote:

“We are updating our estimates for Teck Resources (TECK.B-CA) to reflect expected 3Q price realizations and a sizable base metal settlement adjustment in addition to a number of tweaks to our operational assumptions for the quarter. We now estimate 3Q EBITDA of C$1,302M (versus C$1,360M previously) and EPS of C$0.90 (versus C$1.03 previously). We continue to believe that Teck Resources represents one of the most attractive investment opportunities in the mining industry. The stock is trading at 3.8x and 4.2x 2018 and 2019 EBITDA, respectively, which we believe undervalues the company’s long-lived asset base, capital return opportunities, and potential growth profile. We maintain our Buy rating with a C$46 target price.”

According to TipRanks.com, Pipes is a 4-star analyst with an average return of 7.0% and a 59.6% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Newmont Mining Corporation, and Novagold Resources Inc New.

Teck Resources has an analyst consensus of Strong Buy, with a price target consensus of C$44.80.

Teck Resources’ market cap is currently C$18B and has a P/E ratio of 6.6. The company has a Price to Book ratio of 0.85.

Teck Resources Ltd. is a diversified resource company, which engages in the mining and mineral development of copper, steelmaking coal, zinc, and energy properties. The firm also produces germanium and indium. It opertes through the following business segments: Steelmaking Coal, Copper, Zinc, Energy, and Corporate.

The company’s shares closed on Wednesday at C$31.18.

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