Hudbay Minerals(HBM:TSX) Scotiabank Upgrades to Outperform

STA Research
by: STA Research

 

Scotiabank’s  analyst Orest Wowkodaw today upgraded Hudbay Minerals rating from Sector Perform to Outperform.  The analyst kept his $7.25  CDN target on the stock.

STA Research(stocktargetadvisor) has a average target of $5.00 on the stock, and a consensus Buy rating.

STA Research’s analysis of the stock is Bullish with a score of 8.3 out of 10, where 0 is very bearish and 10 very bullish.

 
What to like:
Underpriced compared to earnings
The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to
make sure there is no specific reason.
Underpriced compared to book value
The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Underpriced on cashflow basis
The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Low debt
The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector.
Sometimes this is low because the company is not growing and has no growth potential.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.

 
What to not like: Low market capitalization
This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique
technology or market which can help it grow or get acquired in future.

 

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