Southern Copper downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Carlos De Alba downgraded Southern Copper to Underweight from Equal Weight with a price target of $68, down from $83. The company owns “high-quality assets,” but lower production guidance and higher forecast cash costs lead to estimates cuts and the downgrade, the analyst tells investors in a research note. The firm says Southern Copper’s revised mine plan points to a lower production outlook until 2027. This is on top of higher cash costs, which points to material downside to consensus estimates, contends Morgan Stanley.