Investing.com - National Bank Financial downgraded HudBay Minerals (TSX:HBM) (NYSE:HBM) from Outperform to Sector Perform on Thursday, while raising its price target to C$40.00 from C$28.00.
The downgrade follows HudBay Minerals’ exceptional share price performance, which has surged 212% since the beginning of 2025, significantly outpacing the TSX Global Base Metals Index’s 82% gain during the same period.
National Bank Financial noted that HudBay shares have climbed 166% since the firm’s upgrade to Outperform on May 14, 2024, compared to the index’s 53% increase over that timeframe.
The research firm cited HudBay’s premium valuation as a key factor in the rating change, pointing out that the company now trades at 1.25x NAV compared to peer average of 1.19x, and 10.9x EV/2026E CF versus peers at 8.4x.
National Bank Financial also expressed caution regarding HudBay’s upcoming guidance, which contributed to the decision to lower the rating despite raising the price target.
In other recent news, Hudbay Minerals has completed a significant transaction with Mitsubishi, selling a 30% interest in its Copper World project. This development has prompted TD Cowen to resume coverage of Hudbay Minerals with a Buy rating, significantly raising its price target to C$43.00 from C$17.00. Additionally, UBS has initiated coverage on Hudbay Minerals with a Buy rating and set a price target of C$34.50. UBS highlights Hudbay as a diversified mid-tier copper producer with strong growth potential. The firm projects a 55% increase in attributable copper equivalent production, from approximately 205,000 tonnes per annum in 2025 to 320,000 tonnes by 2030. These recent developments reflect a positive outlook from analysts regarding Hudbay Minerals’ growth prospects.
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