Analysts seem to be optimistic about Teck Resources (TECK.B) lately, as another research firm gave the stock a Buy rating today. Analyst Lucas Pipes from B.Riley FBR remains bullish on the stock and has a C$47 price target.
Pipes commented:
“We are adding Teck Resources (TECK.B-CA; PT C$47) to the B Riley FBR Alpha Generator. In our opinion, Teck Resources is one of the most undervalued names in our coverage universe. The company is currently trading at 3.9x our 2019 estimates which is below the average multiple in our coal universe of 4.2x. In our opinion, as a diversified mining company, Teck should enjoy a significant premium. While base metal prices have been under pressure in the past few months, the company is still positioned well to generate strong FCF for the foreseeable future as weaker metals prices are more than offset by the current strength in the seaborne met coal market—Teck’s largest business segment. We see catalysts for the stock from greater capital returns and an equity partner for Teck’s QBII copper growth project.”
According to TipRanks.com, Pipes is a 4-star analyst with an average return of 3.1% and a 53.9% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and Teck Resources Limited.
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Teck Resources has an analyst consensus of Strong Buy, with a price target consensus of C$42, representing a 52.1% upside. In a report issued on October 30, CIBC also maintained a Buy rating on the stock with a C$43 price target.
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Teck Resources’ market cap is currently C$15.95B and has a P/E ratio of 4.6. The company has a Price to Book ratio of 0.71.
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 Tuesday at C$27.61.
