Should You Buy Southern Copper Corp (SCCO) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
194.840
1 Day change
3.41%
52 Week Range
194.990
Analysis Updated At
2026/01/26
Southern Copper Corp (SCCO) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown strong financial growth and benefits from the long-term demand for copper, recent analyst downgrades, elevated valuation concerns, and potential near-term price consolidation suggest limited upside. The absence of strong proprietary trading signals and mixed technical indicators further support a cautious approach.
Technical Analysis
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram (1.055), indicating an upward trend. However, the RSI is neutral at 66.101, and the stock is nearing resistance levels (R1: 188.774, R2: 195.679). The pre-market price of $192.6 is close to the second resistance level, suggesting limited room for further short-term gains.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Moving Average Consensus
Sell
4
Buy
10
Positive Catalysts
2026/01/26 05:03:12
Strong financial performance in Q3 2025, with revenue up 15.23% YoY and net income up 23.52% YoY.
Long-term demand for copper driven by AI infrastructure expansion and constrained supply.
Stock has risen 27% in January, reflecting positive investor sentiment.
Neutral/Negative Catalysts
2026/01/26 05:03:12
Multiple analyst downgrades, including JPMorgan and UBS, citing overvaluation and near-term vulnerability in copper prices.
Elevated political risks in Peru and concerns over production guidance for
Technical indicators suggest limited short-term upside with resistance levels approaching.
Stock trend analysis indicates a 60% chance of minor declines in the next day, week, and month.
Financial Performance
In Q3 2025, Southern Copper reported revenue of $3.38 billion (up 15.23% YoY), net income of $1.11 billion (up 23.52% YoY), and EPS of $1.33 (up 20.91% YoY). Gross margin improved to 53.67%, up 5.24% YoY. The company also generated over $12 billion in revenue in Q1 2025 with a net margin of 31%.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent analyst ratings are predominantly negative. JPMorgan downgraded the stock to Underweight with a price target of $117.50, citing limited upside and near-term vulnerability in copper prices. UBS also downgraded the stock to Sell, despite raising the price target to $148, due to concerns over production declines and political risks. Other firms, like Wells Fargo, maintain a neutral stance with modest price target increases.
Wall Street analysts forecast SCCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCCO is 127.95 USD with a low forecast of 90 USD and a high forecast of 152 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast SCCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCCO is 127.95 USD with a low forecast of 90 USD and a high forecast of 152 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
5 Hold
5 Sell
Moderate Sell
Current: 188.410
Low
90
Averages
127.95
High
152
Current: 188.410
Low
90
Averages
127.95
High
152
JPMorgan
Neutral -> Underweight
downgrade
AI Analysis
2026-01-23
New
Reason
JPMorgan
Price Target
AI Analysis
2026-01-23
New
downgrade
Neutral -> Underweight
Reason
JPMorgan downgraded Southern Copper to Underweight from Neutral with a price target of $117.50, down from $119.50. Following the recent rally, the shares are trading at valuation levels that suggest limited upside even at spot copper prices, the analyst tells investors in a research note. For investors seeking exposure to metals in Latin America, JPMorgan highlights Vale as its top pick and sees Antofagasta as an interesting opportunity. The firm sees growing signs of near-term vulnerability for copper prices, saying the move higher has been driven more by technical factors and investor positioning than by fundamental strength.
JPMorgan
Rodolfo Angele
Neutral -> Underweight
downgrade
2026-01-22
Reason
JPMorgan
Rodolfo Angele
Price Target
2026-01-22
downgrade
Neutral -> Underweight
Reason
JPMorgan analyst Rodolfo Angele downgraded Southern Copper to Underweight from Neutral with a $117.50 price target.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for SCCO
