Southern Copper stock: UBS turns Neutral after sharp selloff

Published on 11/12/2026 at 14:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Southern Copper stock faces a more balanced UBS view after a steep selloff. The bank kept its 180 US dollar target as copper fundamentals remain tight.

UBS Reassesses Southern Copper

UBS moved the copper producer to Neutral from Sell while retaining its 180 US dollar price 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.

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UBS moved Southern Copper from Sell to Neutral on Tuesday, November 10, while keeping its 180 US dollar price target unchanged. The rating change followed a sharp selloff and reflects a more balanced risk-reward profile at the current valuation, according to Investing.com.

Valuation Meets Copper Supply Support

UBS analyst Myles Allsop said Southern Copper had fallen about 20 percent over the previous month, broadly in line with copper peers tracked by the COPX index. Copper prices declined by about 4 percent over the same period, leaving valuation as a more important part of the investment case.

UBS remains constructive on copper. The bank expects tight supply fundamentals to support elevated prices over the next three years and said its valuation assumes copper at 6.50 to 7.00 US dollars per pound. Southern Copper trades at about 14 times projected 2027 EV/EBITDA, down from about 19 times in March 2026 and near its two-year average, the report said.

The improved rating does not remove company-specific risks. UBS said the Peru elections and delays affecting Tia Maria's planned 2027 volumes have largely played out as negative catalysts, but project execution remains central to the outlook. Investors are also focused on the delayed start of Tia Maria and the lack of detailed 2027 guidance.

Record Results Raise Expectations

Southern Copper's third-quarter performance provided support for the longer-term growth case. The company posted record results, with earnings of 2.15 US dollars per share versus a 1.96 US dollar estimate and net sales of 4.7 billion US dollars against a 4.46 billion US dollar forecast, according to the Investing.com report.

The combination leaves investors weighing strong recent profitability against the timing and cost of future copper output. A sustained copper price would support the expansion story, while delays or weaker metal prices could put more pressure on the valuation that UBS now considers balanced.

Southern Copper stock traded at 152.85 euros on Lang & Schwarz at 14:13 CET on Thursday, November 12, 2026.