Boliden (Buy, TP: SEK380.00) - Rosy outlook for copper and gold
Having significantly increased our earnings forecasts, we have raised our target price to SEK380 (320) on higher metal price assumptions, and reiterate our BUY. Acknowledging the operational issues, we still expect a sharp increase in earnings from 2025, due to: 1) higher metal prices; 2) higher volumes due to richer metal grades; 3) normal operations at Rönnskär; and 4) growing profits from the Odda smelter. Our spot-based forecasts for 2027 translate into an EV/EBIT of 6x, but we see significant upside potential to our forecasts, as we believe the price outlook for copper and gold remains rosy.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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