Thompson Creek Metals Rating Lowered to Underperform at Bank of America Corp. (TC)
Thompson Creek Metals (NYSE:TC) was downgraded by analysts at Bank of America Corp. from a “neutral” rating to an “underperform” rating in a research report issued to clients and investors on Friday, ARN reports. They currently have a $3.00 target price on the stock, down from their previous target price of $4.00. Bank of America Corp.’s target price suggests a potential downside of 19.57% from the stock’s previous close.
The analysts wrote, “We are downgrading Thompson Creek Metals Co. Inc. (TCM) to an Underperform from Neutral rating, and lowering our price objective (PO) to $3.00/share from $4.00, following our commodities team downgrade of our 2013-15 molybdenum (moly – Mo) and gold (Au) price forecasts, due to weakening fundamentals (higher than expected near-term supply for moly and tapering on gold). TCM announced first concentrate production at its Mt. Milligan copper-gold development project on September 24th, after 3 years of construction that saw capex overruns north of $750mn in the $1.6B project. While we continue to expect Mt. Milligan to improve TCM’s EBITDA ($56mn in 2013 to $486mn in 2015), we believe that risks in TCM shares have increased because the company will have to rely on its relatively high cost moly operations (Thompson Creek and Endako mines) during Mt. Milligan’s ramp up (~12 months) under a weak moly price environment.”
TC has been the subject of a number of other recent research reports. Analysts at Dundee Securities upgraded shares of Thompson Creek Metals (NYSE:TC) from a “sell” rating to a “neutral” rating in a research note to investors on Wednesday, September 4th. Separately, analysts at JPMorgan Chase & Co. downgraded shares of Thompson Creek Metals (NYSE:TC) from an “overweight” rating to a “neutral” rating in a research note to investors on Wednesday, July 17th. They now have a $5.00 price target on the stock. Finally, analysts at JPMorgan Chase & Co. downgraded shares of Thompson Creek Metals (NYSE:TC) from an “overweight” rating to a “market perform” rating in a research note to investors on Wednesday, July 17th. Four analysts have rated the stock with a sell rating, nine have given a hold rating and two have issued a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $4.60.
Thompson Creek Metals (NYSE:TC) traded down 3.22% on Friday, hitting $3.61. 304,093 shares of the company’s stock traded hands. Thompson Creek Metals has a one year low of $2.42 and a one year high of $4.55. The stock’s 50-day moving average is $3.65 and its 200-day moving average is $3.23. The company’s market cap is $618.9 million.
Thompson Creek Metals (NYSE:TC) last posted its quarterly earnings results on Thursday, August 8th. The company reported $0.08 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.03 by $0.05. The company had revenue of $117.80 million for the quarter, compared to the consensus estimate of $111.11 million.
Thompson Creek Metals Company Inc (NYSE:TC) is a diversified mining company.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.