Shares of Teck Resources (NYSE:TECK) jumped in today’s trading session. This can be attributed to reports suggesting that the company intends to spin off its steelmaking coal business in favor of its industrial metals segment. This is a big move, as its coal operations account for more than half of its gross profit.
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Nevertheless, the company wants to better position itself for the global energy transition towards cleaner fuels, which requires metals such as copper. It’s likely that fuel sources such as coal will continue to fall out of favor in the years to come.
Overall, Wall Street analysts have a consensus price target of $44.88 on TECK stock, implying only 0.09% upside potential, as indicated by the graphic above.