Itau BBA has downgraded Southern Copper Corp (SCCO) to Underperform from Market Perform, reflecting heightened caution regarding the company's outlook. The action, taken on December 22, 2025, comes as Southern Copper faces potential competitive pressures and market conditions that could impact its performance.
Southern Copper, headquartered in Phoenix, Arizona, is engaged in the development, production, and exploration of copper, molybdenum, zinc, and silver. The company operates mining, smelting, and refining facilities in Peru and Mexico, employing 16,133 full-time workers. With a current market capitalization of $116.7 billion, Southern Copper's P/E ratio stands at 30.54, and it boasts an impressive dividend yield of 214.8%.
Upcoming earnings reports are anticipated, with estimates of $1.44 EPS and $3.4 billion in revenue for July 27, 2026, and $1.42 EPS with the same revenue expectation for April 23, 2026. The company's recent earnings performance has shown mixed results, with a Q3 2025 EPS of $1.34 matching expectations, while previous quarters exhibited varying degrees of surprise.
Analyst consensus as of December 1, 2025, indicates a Hold rating, with one Strong Buy, one Buy, nine Hold, two Sell, and three Strong Sell ratings among 16 total analysts. Recent actions include a maintenance of Equal-Weight by Wells Fargo and neutral ratings from JP Morgan and UBS, indicating a cautious stance in the current market environment.
Such decisions reflect the evolving landscape for Southern Copper, where analyst ratings serve as one of many inputs for investors considering the company’s fundamentals and market positioning.