Nexa Resources downgraded to Underweight from Overweight at Morgan Stanley

Morgan Stanley downgraded Nexa Resources to Underweight from Overweight with a price target of $5.60, down from $6.00, as part of a broader research note on Americas Metals & Mining. While the firm remains constructive over the long term on decarbonization/electrification trends that support demand for metals and challenging conditions to develop new supply, it prefers to "take chips off the table" as mining equities share prices are more adequately reflecting the China reopening. The timing and magnitude of the company’s operational turnaround were "overestimated", Morgan Stanley adds, noting that it is now cutting its 2023 and 2024 EBITDA estimates by 40% and 5% respectively after incorporating the company’s latest guidance.