Southern Copper stock: UBS turns Neutral after selloff
Published on 11/11/2026 at 14:05 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSUBS sees a more balanced setup
- UBS raised Southern Copper from Sell to Neutral while keeping its 180 US dollar target.
- The bank expects tight copper supply to support elevated prices over the next three years.
- Project timing in Peru and the delayed Tia Maria start remain key risks for investors.
- Record third-quarter results strengthened the growth case, but detailed 2027 guidance is still absent.
UBS raised Southern Copper from Sell to Neutral on Tuesday, November 10, while leaving its 180 US dollar price target unchanged. Investing.com reported that analyst Myles Allsop sees a more balanced risk-reward profile after the mining stock's recent selloff.
Valuation supports the upgrade
UBS said Southern Copper had declined approximately 20 percent over the previous month, broadly tracking copper peers in the COPX exchange-traded fund. Copper prices fell only 4 percent over the same period, according to the report, leaving the stock's relative weakness as a central part of the valuation argument.
The bank estimates Southern Copper at approximately 14 times projected 2027 enterprise value to EBITDA, down from around 19 times in March. UBS said the multiple is now close to the company's two-year average. Its valuation framework assumes copper prices of 6.50 to 7.00 US dollars per pound, in line with the firm's estimates.
Copper outlook meets project risk
UBS remains constructive on copper fundamentals and expects tight supply to support elevated prices over the next three years. The bank also said risks linked to Peru's elections and delays affecting Tia Maria's 2027 volumes have largely played out.
That assessment does not remove execution risks. Southern Copper's delayed Tia Maria start remains a focus for investors, while the absence of detailed 2027 guidance limits visibility into the contribution from future expansion projects.
Strong results raise the bar
The valuation debate follows a record third quarter. Southern Copper reported earnings of 2.15 US dollars per share, above the 1.96 US dollar consensus cited by Investing.com. Quarterly net sales reached 4.7 billion US dollars, exceeding the 4.46 billion US dollar forecast.
Those results support the company's growth case, but investors must weigh operating momentum against project timing and the sustainability of elevated copper prices. Southern Copper stock traded at 156.03 euros on Lang & Schwarz at 14:02 CET on Wednesday, November 11, 2026.
Southern Copper Corporation
- ISIN: US84265V1052
- Ticker: SCCO
- Trading venue: Lang & Schwarz
- Quote: 156.03 euros on Wednesday, November 11, 2026, at 14:02 CET
The S&P 500 market environment remains a key backdrop for US-listed mining shares.
Investors will next focus on Southern Copper's project updates, copper pricing and the company's outlook for 2027. More news and analyses on Southern Copper stock.
