Southern Copper initiated with a Neutral at UBS

UBS initiated coverage of Southern Copper with a Neutral rating and $120 price target. The analyst expects the stock’s valuation premium to the sector to persist given the attractive medium-term fundamentals of copper. Southern Copper is well positioned as it has long-life low-cost copper assets, a strong balance sheet, a simple structure, and growth optionality through its extensive resources and project pipeline, the analyst tells investors in a research note. However, the firm sees the risk/reward as currently balanced with the stock up 65% over the last 12 months.