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Analysts See a 70% Upside in First Quantum Minerals

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Nov. 20 2020, Updated 4:55 p.m. ET

First Quantum Minerals

First Quantum Minerals (FM) has received “strong buy” ratings from eight analysts, while nine have given it “buy” ratings or some equivalent. The remaining five analysts polled by Thomson Reuters on November 22 have rated the stock as a “hold.”

First Quantum has received a mean consensus price target of 21.24 Canadian dollars, representing a whopping 70.6% potential upside to its November 22 closing price. First Quantum has the highest upside potential among the mining companies (EWC) we’re covering in this series based on its consensus price target.

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Analysts’ action

Several analysts have changed First Quantum’s target price over the last month. On October 30, Canaccord Genuity lowered the stock’s price target by 1 Canadian dollar to 18.5 Canadian dollars. Raymond James and CIBC also lowered First Quantum’s target price by 1 Canadian dollar each to 23 Canadian dollars and 16 Canadian dollars, respectively.

However, on November 19, JPMorgan Chase upgraded First Quantum from a “neutral” to an “overweight” and increased its price target from 15.20 Canadian dollars to 16 Canadian dollars.

Third-quarter earnings

First Quantum reported a 4.2% YoY (year-over-year) rise in its third-quarter copper production and raised its 2018 copper production guidance to 595,000 metric tons. Freeport-McMoRan (FCX), Southern Copper (SCCO), and Antofagasta (ANTO) also reported YoY rises in their respective third-quarter copper productions.

First Quantum is facing a new mining tax regime in Zambia that’s scheduled to come into effect next year. During its third-quarter earnings release, First Quantum said, “The Company continues to assess the potential impact on its Zambian operations and maintains a dialogue with Government.”

Keep visiting our Basic Materials page for ongoing updates on copper miners.

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