Teck Resources (TECK-B:CA) (TECK)
Q4 Earnings
Teck Resources, a Canadian base mining company, exceeded analysts’ expectations for its fourth-quarter profit, largely driven by increased copper production at its Quebrada Blanca (QB) mine in Chile. The company’s total copper output for the quarter reached 122,100 tonnes, marking a 19% year-over-year increase. Notably, 60,700 tonnes of this production came from the QB mine, which contributed significantly to the record-breaking copper output.
The impressive quarterly performance was further bolstered by favorable market conditions, including strong sales volumes and higher copper prices, which helped lift profits. CEO Jonathan Price highlighted that the strong performance at the QB mine played a key role in the record copper production for the period.
Looking ahead, Teck expects copper production to range between 490,000 and 565,000 tonnes in 2025. This forecast is reflective of both the progress made in its current projects and the company’s continued focus on expanding its copper output.
Financial Performance
In terms of financial performance, Teck reported an adjusted profit of C$0.45 per share for the fourth quarter, surpassing analysts’ average estimate of C$0.43 per share. This marked a positive result for the company, demonstrating its ability to efficiently manage operations in a favorable market.
Analyst Updates
On February 20, 2025, both Scotia Capital and TD Securities issued research reports on Teck Resources and maintained their positive ratings for the major Canadian mining company.
Scotia Capital (Analyst Rank #9) reiterates its “Outperform” rating which indicates that the research firm believes Teck Resources stock is expected to perform better than the broader market, suggesting strong growth potential driven by the company’s operational successes, particularly in copper production
TD Securities (Analyst Rank #13) maintains its “Buy” rating which similarly indicates that they expect Teck Resources stock to outperform in the near future, with the target price of CAD 73 representing significant upside potential compared to its current trading price of CAD 60.70. This recommendation is based on Teck’s strong production performance, favorable copper market conditions, and ongoing expansion projects aimed at increasing output and profitability.
Stock Forecast & Analysis
Teck Resources Limited has received a favorable stock forecast from analysts. Based on projections from 14 analysts, the average 12-month target price for Teck Resources Limited stands at CAD 68.91, suggesting an upside potential of approximately 13.5% from the most recent closing price of CAD 60.70.
Analyst Sentiment & Stock Ratings
- Average Analyst Rating: Buy – indicating that a majority of analysts covering the stock expect it to outperform.
- Stock Target Advisor-AI’s View: Slightly Bullish – this AI-Powered analysis is based on 9 positive signals and 6 negative signals, reflecting a mix of strengths and risks in Teck’s fundamental and technical indicators.
Recent Stock Performance
Teck Resources’ stock has shown some short-term weakness but remains strong on a yearly basis:
- Past Week: -1.09%, indicating minor fluctuations in market sentiment.
- Past Month: -2.80%, reflecting some downward pressure, possibly due to sector-wide volatility or commodity price fluctuations.
- Past Year: +18.42%, demonstrating strong long-term performance, likely driven by robust earnings, favorable commodity prices, and strategic business decisions.
Outlook
Despite recent short-term price fluctuations, the Buy rating from analysts and the slightly bullish sentiment from Stock Target Advisor indicate confidence in Teck’s long-term growth prospects. Investors may consider the CAD 68.91 price target as a benchmark, while monitoring commodity price movements, global economic conditions, and Teck’s strategic initiatives.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
