Analyst Matt Murphy from BMO Capital maintained a Buy rating on Ero Copper (ERO – Research Report) and keeping the price target at C$21.00.
Matt Murphy’s rating is based on Ero Copper’s ability to outperform earnings expectations despite some operational challenges. The company reported an adjusted EBITDA that significantly exceeded both BMO’s and consensus estimates, and its free cash flow was notably higher than anticipated. Although there were some production misses in copper and gold, the strong financial results, including a better-than-expected adjusted EPS, highlight the company’s resilience and potential for future growth.
Moreover, Ero Copper’s strategic positioning offers exposure to copper growth and deleveraging opportunities at a discounted valuation. The company’s high-grade and high-return on invested capital (ROIC) assets, along with its maintained production and cost guidance for the year, suggest potential for exploration upside and productivity improvements. These factors contribute to the Buy rating, with a target price reflecting a favorable valuation based on projected earnings and asset value.
ERO’s price has also changed moderately for the past six months – from $18.620 to $12.710, which is a -31.74% drop .