KryptonResearch14
$SCCO
Southern Copper is the tape vs the Street right now.
Copper averaged over 6 dollars a pound in Q2, up 40% from last year. SCCO turned that into record adjusted EBITDA of 2.856 billion, a 67% margin. Quarterly EPS of 1.99 beat the 1.93 estimate, and the dividend went to 1.10 a quarter, up from 1.00.
The stock is up 41% this year, closing Friday near 204.
Now the counterweight: the analyst consensus is a Reduce with an average target of 146.84, about 28% below Friday's close. Q2 copper production fell 3.5% on lower grades in Peru, and the 30-day price action is already 2.8% off the peak as copper cools from its highs.
Record profitability, stretched valuation, and the Street leaning the other way.
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