Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Ero Copper Downgraded To Sector Perform From Outperform by National Bank of Canada

BY MT Newswires | ECONOMIC | 07/09/25 11:28 AM EDT

11:28 AM EDT, 07/09/2025 (MT Newswires) -- National Bank of Canada on Tuesday downgraded its rating on the shares of Ero Copper (ERO) to sector perform from outperform leaving its $24.50 price target remained unchanged after the company reported second-quarter production results.

Ero's second-quarter production of 6,400 tonnes from the Tucuma mine in Brazil missed the bank's forecast of 7,840 tonnes.

"While we remain constructive on the H2/25 FCF inflection and discounted EV/2026 CF multiples compared to peers, the market is likely to discount the valuation in the event of a guidance cut and will require more evidence of improved operational performance from Tucuma to confirm an improved outlook for 2026," the bank said.

National Bank said Ero shares have returned 52% since early April and up 23% since the company was upgraded to outperform in May, compared to a 16% increase in the S&P/TSX Global Base Metals Index over the same period.

Price: 20.00, Change: -1.54, Percent Change: -7.15

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article