Nexa Resources upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley analyst Carlos De Alba upgraded Nexa Resources (NEXA) to Equal Weight from Underweight with a price target of $7.80, up from $7.50. The firm says decelerating global growth will pose challenges for mining stocks, particularly if China economic policy :remains modest and reactive.” Amid demand uncertainty, Morgan Stanley prefers base metal equities verses iron ore names on tighter supply outlooks, the analyst tells investors in a research note. For Nexa, the firm sees 60% upside to consensus 2025 EBITDA estimates on the back of its zinc price forecasts. Further, the stock’s risk/reward is now more evenly skewed and balance sheet concerns are down, adds Morgan Stanley.