In a report published Tuesday, Credit Suisse analyst Santiago Perez Teuffer downgraded the rating on Compania de Minas Buenaventura BVN from Outperform to Neutral, and lowered the price target from $35.20 to $27.60.
In the report, Perez Teuffer noted, “With no positives in sight, one of the only factors that could help is a rally in precious metal prices. The stock has dropped YTD on the back of a change in production profile, and then followed the adjustment in precious metal prices. We do not believe BVN has any catalyst in the near future that could trigger a rally. If gold and silver prices were to rally, we would expect a positive reaction in BVN, though we would expect it to underperform its precious metal peers. Despite an interesting upside potential to our NPV, we are rating it with a Neutral (from Outperform) on the lack of catalysts despite the 27% upside. We are lowering our target price to US$27.60 from US$35.20. BVN has not been able to control costs (COGS & exploration). The result: crushed margins-1Q13 saw a shocking 19p.p. y/y Ebitda mg contraction.”
Compania de Minas Buenaventura closed on Monday at $21.22.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in