FINWIRES · TerminalLIVE
FINWIRES

Capstone Copper Maintained at Buy at TPH Following Q1 Results; Price Target Kept at C$20.00

By

Stifel Canada on Thursday maintained its buy rating on the shares of Capstone Copper (CS.TO) and its C$20.00 price target following first-quarter results from the Brazilian miner.

"Capstone reported Q1/26 adjusted EPS of $0.12 vs. our $0.10 (consensus: $0.11) and adjusted EBITDA of $329Mln vs. our $263Mln (consensus: $291Mln) on copper production of 48.0Kt vs. our 39.3Kt at C1 cash cost of $2.66/lb vs. our $2.81/lb. The stronger Q1/26 was driven by post-strike Mantoverde operating above design throughput and stronger by-product credits, offsetting higher tax expense. FY26 guidance was reiterated including consolidated copper production of 200-230Kt at $2.45-2.75/lb C1 cash cost, with management flagging higher diesel and sulphuric acid prices as Middle East-driven cost headwinds put upward cost pressure on sulphide and acid-consuming oxide production. We estimate $64Mln or 5.9% EBITDA downside on uncontracted acid exposure at spot acid prices ($425+/t) excluding offsetting tailwinds of stronger copper and by-product prices (silver, gold, molybdenum). MVO remains on-plan with $176Mln capex unchanged and 45Ktpd throughput targeted by early-2027; Santo Domingo FID timing was tightened to Q4/26 (from H2/26)," analyst Ralph Profiti wrote.

(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Price: $11.25, Change: $+0.40, Percent Change: +3.74%

Related Articles

Research

Research Alert: CFRA Lowers Opinion On Adss Of Deutsche Bank To Sell From Hold

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our rating to Sell (from Hold) and cut our 12-month target price to USD28 (from USD37). This is based on applying a reduced target P/E multiple of 7.1x (from 9.1x) to our unchanged 2026 EPS forecast. The multiple contraction reflects the invalidation of our previous thesis that the bank had moved beyond its historical risk profile following its Q1 2026 results. A sharp increase in credit provisions challenges the de-risking narrative, a decline in the CET1 capital ratio weakens the capital return story, and faltering performance in core divisions confirms the bank's vulnerability to a deteriorating macroeconomic backdrop. The market's negative reaction underscores a loss of confidence in the quality of the bank's earnings and its ability to navigate mounting headwinds. The risk-reward profile, which we previously saw as balanced, is now clearly skewed to the negative.

$DB
Research

Research Alert: CFRA Keeps Hold Rating On Shares Of Automatic Data Processing, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target price by $50 to $235, valuing shares at 20.1x our next-12-month EPS estimate, a discount to ADP's five-year average forward P/E of 28.5x. We increase our FY 26 EPS estimate by $0.06 to $11.05 and keep FY 27's at $11.94 on respective revenue forecasts of $21.87B (+6%) and $23.03B (+5%). Management's raised guidance across multiple metrics reflects growing confidence in the business model's resilience and the client funds strategy's trajectory. The company increased full-year FY 26 revenue growth expectations to 6%-7% (from approximately 6%) and adjusted diluted EPS growth to 10%-11% (from 9%-10%). Additionally, management raised adjusted EBIT margin expansion guidance to 70 bps-80 bps (from 50 bps-70 bps) and improved U.S. pays per control expectations to approximately 1% (from flat), suggesting continued cautious optimism about employment trends while maintaining focus on the client funds investment strategy as the primary value driver.

$ADP
Research

Research Alert: CFRA Keeps Hold Opinion On Shares Of Mondelez International

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Our 12-month target price of $63, raised $1, reflects a 19x multiple of projected 2027 EPS, in line with MDLZ's historical forward P/E average. We raise our 2026 EPS estimate by $0.06 to $3.08, but cut 2027's by $0.11 to $3.32. We continue to see headwinds related to chocolate and biscuits divisions, though favorable forex has been helping to a degree. MDLZ highlighted plans to stimulate growth with more promotional activity, which could boost revenues (we see an acceleration in revenues in 2027), but may come with the trade-off of narrower margins. We note that cost-saving efforts can also contribute to staving off some of the margin pressure. MDLZ is largely hedged on its cocoa input costs for 2026 but less so in 2027. Thus, if the substantial rise in cocoa pricing in 2025 does not reemerge, it should help the bottom line in 2027 as cost pressures should ease. Share buybacks have also contributed to EPS, and we note that Q1 2026 share count was down 1.5% from one year earlier.

$MDLZ