Teck Resources price target lowered to $42 from $44 at Morgan Stanley

Morgan Stanley analyst Carlos De Alba lowered the firm’s price target on Teck Resources to $42 from $44 but keeps an Overweight rating on the shares as part of a broader research note on Americas Metals & Mining, also stating that the stock remains the firm’s Top Pick in the space. While Morgan Stanley is constructive over the long term on decarbonization and 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 analyst tells investors in a research note. The analyst adds that Teck offers growing exposure to copper and long-term potential expansion in volumes and EBITDA, stating that it sees Teck’s asset base and free cash flow rising in coming years post QB2 completion that may result in higher dividends ahead.