Analysts rate HudBay Minerals Inc(HBM:TSX) with a Strong Buy rating and a $10 target

STA Research
by: STA Research
HudBay Minerals Inc

Analysts rate HudBay Minerals Inc with a consensus Strong Buy rating and a 12-month average target price of $10.55 per share.

Based on the HudBay Minerals Inc stock forecasts from 12 analysts, the average analyst target price for HudBay Minerals Inc is CAD 10.55 over the next 12 months. HudBay Minerals Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of HudBay Minerals Inc is Bearish, which is based on 2 positive signals and 10 negative signals. At the last closing, HudBay Minerals Inc’s stock price was CAD 5.67HudBay Minerals Inc’s stock price has changed by -5.66% over the past week, +29.45% over the past month and -23.07% over the last year.

About HudBay Minerals Inc (HBM:CA:TSX)

Hudbay Minerals Inc., a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; silver/gold doré; molybdenum concentrates; and zinc metals. The company owns three polymetallic mines, four ore concentrators, and a zinc production facility in northern Manitoba and Saskatchewan, Canada, as well as in Cusco, Peru; and copper projects in Arizona and Nevada, the United States. HudBay Minerals Inc. was founded in 1927 and is headquartered in Toronto, Canada.

Most Recent Analysts Ratings For HudBay Minerals:

 

News:

HudBay Minerals recently released the company’s quarterly earnings of $0.12 per share, which eclipsed the average consensus estimate of $0.11 per share. The company beat the previous years EPS dramatically, with earnings of only  $0.02 per share in 2021. The earnings beat was almost 10 percent higher than previously forecasted. The company is seeing the benefit in the massive appreciation in commodity prices which is boosting top line revenue growth. Investors alike are concerned going forward that sales  and profits may dip if commodity prices weaken.  Many seasoned mining experts think that various commodities  could be in a cyclical bear market brought on by surging interest rates and a cut in demand across various manufacturing and building industries.

What we like:

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

Disclaimer

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