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Most Anticipated Earnings: RY-T, DOL-T and more Canadian Companies Reporting Earnings this Week (Dec 02-06)TSX closes above 24,000Data lifts markets to end AugustThis summary was created by AI, based on 8 opinions in the last 12 months.
Capstone Copper Corp (CS-T) is a mid-sized copper miner with great properties in South America, particularly in Chile. Experts are bullish on the company with potential for significant upside due to supply constraints not meeting growing demand from electric vehicles and the electricity grid. The company's debt is fairly high but cash flow is growing nicely, and it is expected to earn 28c a share this year and then a near-double to 54c next year. Despite being more expensive at 16X earnings, the stock is growing fast and has excellent exposure to copper. Overall, the company is in a sweet spot with positive outlook on copper fundamentals and potential for re-rating as its latest project goes into production.
We recently added more CS to our model portfolio and consider it a buy. We are not fond of targets, especially short term, but $13 to $14 we think is possible.
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Fundamentally 6/10, value of 1/10. Hit her target, but analysts still see about 40% upside. Doesn't own, likes copper space, but she'd use an ETF. Seeing a pop in materials, especially today. Volatile. If you own, ride it a bit longer and then take profits.
Long-term, the story hasn't changed: there will still be supply constraints that won't meet growing demand from EVs and the electricity grid. This, like mid-sized copper miners--are possible takeover targets.
The company is not too big, not too small, in a sweet spot. The copper price has pulled back a little, but has seen a great run-up. Supply has declined while demand is rising from places like EVs. The copper fundamentals look great.
We can't do much about the cyclicality of the metals sector. It will always be cyclical, and nothing should be considered a 'buy and forget' stock. Much will depend on economic growth, particularly in China. It is interesting right now in that China is weak but copper is strong. It is possible investors are seeing China as 'bottoming' and there are also supply concerns (i.e. the recent closure of a large mine in Panama). The sector is cyclical, and thus valuations are usually low. CS is more expensive at 16X earnings, because it is growing fast. From a loss last year it is expected to earn 28c a share this year and then a near-double to 54c next year. Debt is fairly high but cash flow is also growing nicely. We would be comfortable owning it in a size reflective of its risk. We might not add to a current position as the price rise naturally brings position size up.
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Is very bullish copper. He likes Capstone because it operates in a safer country than others in Latin America, Chile.
Operate in South America and Mexico. This will be re-rated as its latest project goes into production. He expects 20-30% upside even without copper prices rising. Excellent exposure to copper.
(Analysts’ price target is $8.65)The price of CS is largely dependent on the underlying price of copper, and copper is a factor of both supply and demand. We believe that the long-term demand for copper is strong, and thus we like the long-term prospects of copper. CS is expecting good sales and earnings growth over the next couple of years, and its recent growth has been strong. Its valuation is decent and debt levels are OK. It has been growing its balance sheet and expanding its operations. As a growth play on copper, we like CS and it is set to report earnings next Friday November 3. We feel that in a better market, the materials sector will perform well and CS can benefit from this performance. We would prefer to wait until earnings to add to the name, but for a growth play on copper, we like CS.
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Bullish on copper, but does not own shares.
Company highly levered to copper prices.
Unsure on short term demand for copper given recession concerns.
Takeover speculation on the company recently.
Well run company.
Good takeout target. Cost structure has come down. Better than average, but not top tier. Pretty good balance sheet. Leveraged play on copper. China reopening plus the need for copper gives real leverage to better copper prices.
Revenue was $362M, ahead of estimates ($351M); EPS was 6c, vs 3.9c expected.
EBITDA of $80.5M missed estimates of $98.6M.
Copper output rose to 45,500 tonnes, with new production from Chile boosting numbers.
Costs were $2.50/lb. 2023 guidance is for 170,000 to 190,000 tonnes at costs of $2.50 to $2.70.
Results look good but not overly noteworthy one way or the other.
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company is cheap, trading at 8x forward earnings. Growth rate is expected to be rapid in the next two years. Very little debt and has positive cash flows. Insider ownership is high. Unlock Premium - Try 5i Free
Capstone Copper Corp is a Canadian stock, trading under the symbol CS-T on the Toronto Stock Exchange (CS-CT). It is usually referred to as TSX:CS or CS-T
In the last year, 7 stock analysts published opinions about CS-T. 6 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Capstone Copper Corp.
Capstone Copper Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Capstone Copper Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
7 stock analysts on Stockchase covered Capstone Copper Corp In the last year. It is a trending stock that is worth watching.
On 2024-12-04, Capstone Copper Corp (CS-T) stock closed at a price of $9.41.
If you want a name with a bit more torque. Great properties in South America.