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FINWIRES

Research Alert: CFRA Maintains Hold Opinion On Shares Of Teck Resources

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by CAD4 to CAD87, based on an EV/EBITDA of 6.8x our 2027 EBITDA estimate vs. TECK's three-year average forward EV/EBITDA of 7.2x and the peer average of 10.0x. We raise our 2026 EPS estimate by CAD0.81 to CAD4.46 and raise our 2027 EPS forecast by CAD0.85 to CAD4.90. TECK's pending merger with Anglo American remains on track for closing between September 2026 and March 2027, with regulatory approval progressing in China. The combined Anglo-Teck entity is expected to become a top-five global copper producer with ~1.2 million tonnes of annual production, growing to ~1.35 million tonnes by 2027. Management projects potential for USD800 million in annual pre-tax synergies and an additional USD1.4 billion EBITDA uplift from optimizing the adjacent QB-Collahuasi assets. TECK's 2026 copper production guidance of 455,000-530,000 tonnes is unchanged, with QB advancing toward steady-state operations as Tailings Management Facility development progresses.

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