Teck Resources (TECK) Stock Forecast & Price Target

Teck Resources has significantly improved its mill performance, achieving a throughput of approximately 135,000 tons per day and an 82% recovery rate, which positions the company favorably for increased production efficiency. The majority-owned Quebrada Blanca 2 mine is projected to enhance Teck's attributable copper output by around 75%, contributing to a strategic shift toward low-carbon metals like copper, following its divestiture of the oil sands and coal businesses. Furthermore, the potential merger with Anglo American in September 2025 could unlock substantial operational synergies, especially in Chile, underscoring a compelling growth strategy that further positions Teck for long-term financial strength.

Teck Resources has faced significant underperformance relative to global peers, with a year-to-date decline of 17%, primarily attributed to ramp-up challenges at its Quebrada Blanca 2 (QB2) copper mine in Chile. The company's recent guidance reduction for 2027-2028 has been viewed as likely conservative, suggesting potential ongoing challenges in achieving production targets. Additionally, the merger with Anglo American raises questions given the backdrop of these operational difficulties and the uncertain market environment for copper and zinc.