Glut of coal means more production cuts are possible, Teck Resources says

Teck Resources Ltd is now valued at $4.37 billion. The firm now has a “market perform” rating on the stock.

Despite the ongoing turmoil in the industry, Teck Resources Ltd (USA)(NYSE:TCK) was still able to post better than expected second quarter earnings that beat estimates mostly as a result of lower oil prices that resulted in low energy costs. The stock has declined 64 percent in the last 12 months. “However, as a counter to these strengths, we also find weaknesses including poor profit margins, feeble growth in the company’s earnings per share and disappointing return on equity”.

A number of analysts have recently weighed in on TCK shares.

A recent stock analyst activity consisted of Barclays reiterating their Underweight stance on July 16.

Separately, TheStreet Ratings team rates TECK RESOURCES LTD as a Hold with a ratings score of C-. Analysts at Credit Suisse reiterated a “neutral” rating and set a $17.00 price target (down previously from $17.50) on shares of Teck Resources in a research note on Thursday, July 2nd. The stock has a 50-day moving average of $10.12 and a 200-day moving average of $12.96. Analysts at Cowen and Company reiterated an “outperform” rating on shares of Teck Resources in a research note on Wednesday, July 15th. 6 analysts have rated the company at hold. Teck Resources presently has an average rating of “Hold” and an average price target of $16.25.

Teck Resources Limited (TSE:TCK) is a diversified resource company.

Teck has zinc, copper and coal operations in Canada and around the world. The Company also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. The Company operates in five segments: The coal segment has Coal Mountain, Cardinal River, Fording River, Line Creek mines, Elkview mine and Greenhills mine; The copper segment has Quebrada Blanca, Carmen de Andacollo, Antamina, Highland Valley Copper and Duck Pondin; The zinc mines include Red Dog mine, Antamina mine, metallurgical facility and Pend Oreille, and The energy segment has three oil sands projects located in the Athabasca region of northeastern Alberta and Wintering Hills Wind Power Facility in Alberta.