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Nexa Resources shares target cut by BMO Capital, cites capital allocation

EditorEmilio Ghigini
Published 03/05/2024, 14:28
NEXA
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On Friday, BMO Capital adjusted its outlook on Nexa Resources (NYSE:NEXA) shares, reducing the price target to $7.00 from the previous $7.50. The firm retained its Market Perform rating on the stock.

The revised target follows Nexa's financial report, which presented production volumes and revenues that aligned with market anticipations. The company's adjusted EBITDA was reported to be marginally above expectations, whereas the adjusted earnings per share (EPS) did not meet the forecasted figures.

The assessment by BMO Capital reflects Nexa's ongoing efforts to prioritize disciplined capital allocation, the ramp-up completion at their Aripuanã project, and the progression of the Cerro Pasco initiative. Despite the slight decrease in the price target, the Market Perform rating suggests that the firm's stance on the stock remains unchanged.

Nexa's recent financial outcomes indicate a mixed performance, with some aspects of the business meeting the anticipated targets while others fell short. The company's focus on strategic priorities is aimed at enhancing its operational efficiency and financial health.

The price target reduction to $7.00 represents a modest adjustment, reflecting the analyst's view of the company's current valuation and future prospects. The Market Perform rating indicates that the stock is expected to perform in line with the broader market or sector average.

Investors and market watchers will continue to monitor Nexa Resources as it strives to achieve its operational goals and improve its financial performance. The company's progress on key projects like Aripuanã and Cerro Pasco will be critical factors in its ability to meet or exceed market expectations in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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