Teck Resources (TECK) Stock Forecast & Price Target

Teck Resources's stock outlook is positively influenced by its strategic shift towards copper, which is now the primary commodity contributing to its EBITDA following the divestiture of its metallurgical coal business. The expected increase in throughput capacity by 50% at the Quebrada Blanca plant, combined with a projected 75% rise in attributable copper production, positions Teck favorably as it enhances operational efficiencies and expands its production capabilities. Furthermore, the anticipated merger with Anglo American underscores the potential for substantial operational synergies, solidifying Teck's competitive standing in the base metals market while projecting significant growth in the low-carbon metals sector.

Teck Resources has faced significant challenges, with its shares down 17% year-to-date, largely attributed to ramp-up difficulties at its Quebrada Blanca 2 (QB2) copper mine in Chile. The company's recent guidance for 2027-2028 has been reduced, suggesting a conservative outlook that may limit potential growth and investor confidence. Additionally, despite ongoing issues related to the Tailings Management Facility, the overall sentiment is negative, indicating that the stock is likely to continue underperforming relative to its global peers.