Teck Resources (TECK) Stock Forecast & Price Target

Teck Resources has transitioned to a focus on copper, which is now the primary contributor to its EBITDA following the divestiture of its metallurgical coal and oil sands businesses. The majority-owned Quebrada Blanca 2 project in Chile is anticipated to increase Teck's attributable copper production by approximately 75%, enhancing its position as a top-three zinc miner and bolstering its overall growth strategy toward low-carbon metals. Additionally, a proposed merger with Anglo American is expected to create significant operational synergies, further solidifying Teck’s financial footing and valuation outlook.

Teck Resources has faced a significant decline in stock performance, with shares down 17% year-to-date, primarily due to operational challenges at its Quebrada Blanca 2 (QB2) copper project. The recent decision to merge with Anglo American raises concerns, as it lacks a premium offer and signals a disappointing loss of a prominent Canadian mining entity and its primary stock listing. These factors, combined with Teck's underperformance relative to global peers, contribute to a negative outlook for the company's financial prospects.