Teck Resources (TECK) Stock Forecast & Price Target

Teck Resources has strategically shifted its portfolio towards low-carbon metals, with copper now representing its largest EBITDA contributor following the divestment of its metallurgical coal and oil sands businesses. The company's major new copper project at Quebrada Blanca 2 is projected to boost attributable copper production by approximately 75%, underscoring its significant growth potential. Furthermore, the proposed merger with Anglo American is anticipated to create substantial operational synergies in Chile, enhancing Teck's competitive positioning within the base metals sector.

Teck Resources has experienced a significant underperformance, with its shares declining 17% year-to-date, primarily attributed to ramp-up challenges at the Quebrada Blanca 2 project. Despite strategic shifts towards low-carbon metals and an increased copper production forecast, the lack of a premium in the recent merger agreement with Anglo American adds to investor disappointment. Furthermore, concerns arise from the potential loss of Teck's status as a Canadian mining champion and its primary listing, which could negatively impact future investor sentiment and market perception.