Teck Resources (TECK) Stock Forecast & Price Target

Teck Resources is poised for significant growth, particularly in copper production, with a projected 75% increase in attributable copper output driven by the majority-owned Quebrada Blanca 2 project. With ongoing optimization efforts, mill throughput capacity is expected to rise over 50%, enhancing operational efficiencies and recoveries to 82%. The strategic rebalancing towards low-carbon metals and the recent merger agreement with Anglo American highlight the company's strong positioning and the potential for operational synergies, marking a promising future for its financial performance.

Teck Resources has faced significant underperformance in the market, with its shares declining 17% year-to-date compared to global peers, primarily attributed to ramp-up challenges at its Quebrada Blanca 2 (QB2) copper mine in Chile. Additionally, the company's recent guidance for 2027-2028 has been viewed as conservative, raising concerns about future growth prospects despite a strategic shift towards low-carbon metals like copper. Ongoing issues related to the Tailings Management Facility (TMF) at QB2, although currently deemed transitory, may still pose risks to medium- to long-term operational stability, further contributing to the negative outlook on the stock.