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Teck Resources receives mixed analyst ratings amid dividend increase

EditorAmbhini Aishwarya
Published 07/12/2023, 09:10 pm
© Reuters.
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TORONTO - Teck Resources Limited (NYSE:TECK), a prominent player in the mining industry, has been navigating through a period of contrasting analyst opinions and strategic financial movements. While some investment firms have adjusted their price targets and ratings for the company, Teck Resources itself announced an increased dividend, signaling confidence in its financial health.

On Wednesday, the company's shares saw a modest uptick of 0.7% to close at C$50.11 (USD1 = CAD1.3588). This movement was accompanied by a trade volume of 549,912 shares. The stock's performance over the past year has fluctuated between a low of C$44.70 and a high of C$66.04, reflecting the volatile nature of commodities markets.

Amid this backdrop, Eight Capital endorsed Teck Resources with a "Buy" status and an ambitious target price of C$70. This optimistic stance was echoed by several other firms, including JPMorgan Chase & Co. (NYSE:JPM), Raymond James, and Scotiabank, which have offered targets ranging from C$52 to C$69 with ratings from "Overweight" to "Outperform."

However, not all analysts are as bullish. Jefferies Financial Group revised their target price down to C$65, while B.Riley previously set their target at $63 but maintained a "Buy" rating on October 26th. On Tuesday, October 17th, Scotiabank downgraded the stock to "Sector perform," adding to the mixed sentiments. Despite these varying views, the consensus among twelve analysts remains a "Buy" with an average price target of C$63.88.

Further reinforcing investor confidence, Teck Resources declared an increased dividend yielding 1.37% for shareholders registered by December 15th, reflecting strong financial health with a net margin of 15.78% and a return on equity (ROE) of 9.11%. This announcement followed a report on Tuesday, October 24th where the company disclosed earnings per share (EPS) of $0.57 and revenue of $2.68 billion — figures that fell short of forecasts.

Institutional investors have also shown interest in Teck Resources' potential. Lbp Am Sa raised its stake by purchasing shares worth roughly $3.76 million, while others like Nvwm LLC and Park Place Capital Corp initiated new holdings in the range of $26K-$27K during Q1-Q2. Money Concepts Capital Corp entered with nearly $29K in Q4, Optimum Investment Advisors grew its investment by 60% to 800 shares, and Achmea Investment Management B.V started with about $37K in Q1.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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