Deutsche Bank on Monday upgraded its rating on the shares of Teck Resources (TECK-B.TO, TECK) to buy from hold while leaving its price target unchanged at US$42.00 after the miner last week said it will defer sanctioning major projects as it looks to fix problems at its QB copper project in Chile.

"TECK has been a major laggard this year due to ongoing ramp-up issues at QB. From a relatively high level of optimism mid last year, as TECK transformed into a copper pure play, investor sentiment now seems rock-bottom. As a result, the shares are trading below greenfield replacement cost and at a wide discount to global peer.. In a consolidating industry where strategic value in copper assets is high, we believe this presents a compelling value opportunity. Last week, TECK announced a QB action plan and confirmed that sanctioning of major growth projects will be deferred; the market now expects another reset of guidance and the project delays are a clear positive, in our view. Following our downgrade last year, we return TECK to a BUY rating with an unchanged TP of US$42," analyst Liam Fitzpatrick wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 48.01, Change: +0.45, Percent Change: +0.95