Southern Copper upgraded by UBS with a new price target

UBS upgraded Southern Copper (SCCO) to Neutral from Sell, citing balanced risk-reward. SCCO's stock is down 16.41% over 30 days and 7.01% over 90 days, but up 34.5% over 1 year. The stock trades near the consensus target of $175.30, with a P/E of 23.2x. Investors weigh project risks and valuation.

UBS raised its rating for Southern Copper from Sell to Neutral, maintaining a $180 price target. The change reflects a shift in analyst sentiment on the company's prospects.

UBS upgraded Southern Copper (NYSE:SCCO) to Neutral from Sell, maintaining a $180 price target. The stock fell 20% in a month, outpacing copper prices. UBS sees balanced risk-reward and attractive valuation. Southern Copper reported Q3 2026 earnings of $2.15 per share, beating estimates, with net sales of $4.7 billion. Concerns include project delays and copper price sustainability.

Copper prices dropped to a 4-month low of US$6.2 per pound on 5 November 2026, following US midterm elections. Peru, a top copper producer, is affected due to its reliance on copper exports and mining taxes. Southern Copper (SCCO) and Freeport-McMoRan (FCX) saw significant stock declines. The drop is linked to concerns about potential Democratic policies impacting AI data centres, which use large amounts of copper.

Southern Copper (SCCO) shares fell 7.42% to $177.53, while Freeport-McMoRan (FCX) dropped 5.55% to $62.47, both hitting 3-month lows. The decline was steeper than the 1.86% drop in the CPER copper futures fund. The sell-off coincided with broader market declines, including a 2.86% drop in the Nasdaq. Chile's copper production fell 15.1% year-on-year in September, and Cochilco raised its 2027 copper price forecast to $5.95 per pound.

Grupo México plans to invest $4B-$6B in its U.S. unit, Asarco, to expand copper mining and restart a smelter. Freeport-McMoRan (FCX) and Southern Copper (SCCO) reported strong Q2 earnings, driven by AI and data center demand. GE Vernova (GEV), Eaton (ETN), and Hubbell (HUBB) also benefit from infrastructure investments, with mixed stock performance.