Teck Resources upgraded to Buy at Canaccord on coal spin potential

Canaccord upgraded Teck Resources to Buy from Hold with a price target of C$70, up from C$53.50, citing the potential that a spin out of its coal business could occur in the near-term. Bloomberg, citing unnamed sources, has reported that Teck could announce a spin-out of its coal division next week, said the analyst, who also noted that the company is scheduled to report its full Q4 results on February 21. Pointing out that such a move would be the second major move by the company to separate its base metals business from its fossil fuel business, the firm noted that post a spin out, the base metals business will have to fund its entire growth pipeline on its own, but adds that it believes significant value can be unlocked via a separation.