BofA Downgrades Southern Copper Rating Amid Price Target Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 01 2026
0mins
Should l Buy SCCO?
Source: Yahoo Finance
- Rating Downgrade: BofA downgraded Southern Copper (SCCO) from Neutral to Underperform while raising its price target from $162 to $175, reflecting concerns over the stock's “stretched” valuation and weaker near-term operating outlook.
- Production Forecast Decline: BofA expects Southern Copper's production to decline by 3% through 2027, indicating challenges that may impact future profitability and necessitating cautious risk assessment by investors.
- Morgan Stanley's Perspective: Morgan Stanley raised its price target on Southern Copper from $137 to $156 while maintaining an Underweight rating, indicating a reassessment of current commodity prices and foreign exchange assumptions, highlighting market divergence on the stock.
- Market Competition Analysis: While Southern Copper is recognized as a quality long-term investment, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, prompting investors to consider more attractive opportunities.
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Analyst Views on SCCO
Wall Street analysts forecast SCCO stock price to fall
10 Analyst Rating
0 Buy
5 Hold
5 Sell
Moderate Sell
Current: 184.970
Low
90.00
Averages
127.95
High
152.00
Current: 184.970
Low
90.00
Averages
127.95
High
152.00
About SCCO
Southern Copper Corporation is an integrated copper producer. The Company is engaged in the production of copper, molybdenum, silver, and zinc. The Company’s mining, smelting and refining facilities are located in Peru and Mexico and conducts exploration activities in those countries and in Argentina, Chile and Ecuador. Its segments include the Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Its Peruvian operations include the Toquepala and Cuajone mine complexes and smelting and refining plants, including a precious metals plant, industrial railroad and port facilities. Its Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Its Mexican underground mining operations include five underground mines that produce zinc, copper, lead, silver and gold, and a zinc refinery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Price Surge Driven by Shortages: The tight supply has caused U.S. copper futures to soar over 41% in 2025, marking the largest increase since 2009, reflecting strong demand for copper and the fragility of supply chains in the market.
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- Producer Price Index Stabilization: The producer price index fell by 0.9% year-on-year, better than the expected 1.2% decline, indicating that rising costs for metals and commodities are providing a floor for factory prices, potentially alleviating profit pressures for businesses.
- Fiscal Stimulus Measures: The Chinese government allocated 250 billion yuan for a consumer trade-in program in its 2026 budget, although reduced from 300 billion yuan in 2025, reflecting a commitment to stimulate consumption in response to economic slowdown.
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- Rising Treasury Yields: The 10-year U.S. Treasury yield climbed to 4.143%, while the 30-year yield rose to 4.754%, as markets accelerated their repricing of inflation risk, reflecting heightened investor anxiety over future rate policies.
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- Rating Downgrade: BofA downgraded Southern Copper (SCCO) from Neutral to Underperform while raising its price target from $162 to $175, reflecting concerns over the stock's “stretched” valuation and weaker near-term operating outlook.
- Production Forecast Decline: BofA expects Southern Copper's production to decline by 3% through 2027, indicating challenges that may impact future profitability and necessitating cautious risk assessment by investors.
- Morgan Stanley's Perspective: Morgan Stanley raised its price target on Southern Copper from $137 to $156 while maintaining an Underweight rating, indicating a reassessment of current commodity prices and foreign exchange assumptions, highlighting market divergence on the stock.
- Market Competition Analysis: While Southern Copper is recognized as a quality long-term investment, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, prompting investors to consider more attractive opportunities.
See More
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- Analyst Target Increase: Citi raised Corning's price target from $120 to $170, reflecting optimistic growth expectations, while the investment club also increased its target from $140 to $160, showcasing confidence in the company's role in AI infrastructure.
- Fiber Optics Growth: Corning's optical communications segment achieved a 35% revenue growth and a 71% net income increase in 2025, primarily driven by the rising demand for fiber optic cables in data centers, highlighting the company's critical position in the cloud computing market.
- Partnerships with Major Clients: Corning secured a fiber optic cable supply agreement with Meta worth up to $6 billion, with expectations of forming more partnerships with large tech firms, further solidifying its leadership in the fiber optics market.
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