Teck Resources downgraded to Sector Perform from Outperform at National Bank

National Bank downgraded Teck Resources (TECK) to Sector Perform from Outperform with a price target of C$77.50, down from C$85. The company completed the sale of its coal business in 2024, and has completed C$882M of its planned C$3.5B share buyback to date, but while continued buybacks are expected to remain supportive of the share price, the firm’s focus is on Teck’s capital allocation shift to development projects throughout 2025, the analyst tells investors in a research note. National Bank adds that with the shift to fund the next leg of copper growth, the firm does not see any free cash flow available to the company to fund share buybacks through 2025/2026 without taking on additional leverage.