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Capstone Copper Corp (CS-T) is viewed positively by various experts, highlighting its emergence as a significant player in the South American copper market. While it may not possess the high-quality assets of larger competitors like FCX, it is perceived as a safer investment with potential for notable returns. The stock has experienced a robust 41% increase over the past year, despite some insider selling, which is not viewed as a major concern given the substantial insider ownership exceeding $200 million. The future performance of CS-T is largely believed to hinge on copper price dynamics. With expectations for EPS to more than triple by 2025, experts recommend a bullish outlook, suggesting the stock could reach price targets of $13 to $14, presenting approximately 40% upside potential for investors. Furthermore, Capstone's position in a sweet spot within the market is reinforced by the anticipated supply constraints driven by growing demand, particularly for electric vehicles and electricity grids, which also positions it as a potential takeover target.
Insider selling is never a 'great' sign but there can be lots of reasons for it. Insiders still own more than $200M in stock. We can also live with a bit of insider selling on a stock that has risen 41% in the past year. The future will likely still be dictated more by copper prices than any trading activity. EPS is expected to more than triple in 2025. If CS can achieve this growth, the stock should do well.
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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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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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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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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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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. 4 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 2025-04-15, Capstone Copper Corp (CS-T) stock closed at a price of $6.04.
Emerging play in South America. Not the quality asset of a FCX, but it is safer. He's not a mining expert, but thinks there's some money to be made here.