Hudbay Minerals Receives Buy Rating from Jefferies with C$18.00 Price Target

Jefferies analyst David Hove maintains a Buy rating on Hudbay Minerals with a price target of C$18.00. The company's shares closed at $11.03. Analyst consensus is Strong Buy with a price target consensus of $12.44, a 12.78% upside from current levels. Corporate insider activity is negative, with 21 insiders selling their shares.

Hudbay Minerals Inc. (HBM) reported its second quarter 2025 earnings, beating analyst expectations and driving a significant stock price increase. The company's adjusted earnings per share (EPS) of $0.19 exceeded the forecast of $0.11, marking a 72.73% surprise. Revenue of $536.4 million was slightly above the expected $534.39 million, contributing to a robust market sentiment.

The company's stock surged 16.95% in pre-market trading, reaching $11.52, a 15.69% increase from the previous close of $9.85. This performance aligns with Hudbay's strong return over the last five years, although the high beta of 2.06 indicates significant volatility.

Hudbay's Q2 2025 results include an adjusted EBITDA of $245 million, net earnings of $0.30 per share, and cash from operations of $260 million. The company's net debt reduced to $434 million, achieving a leverage ratio of 0.4x, the lowest in over a decade. These results highlight Hudbay's effective cost management and operational efficiency despite challenges.

Jefferies analyst David Hove maintains a Buy rating on Hudbay Minerals with a price target of C$18.00. Analyst consensus is Strong Buy with a price target consensus of $12.44, a 12.78% upside from current levels. Corporate insider activity is negative, with 21 insiders selling their shares.

Hudbay reaffirmed its full-year 2025 production guidance and improved its cost guidance to $0.65 to $0.85 per pound. The company is optimistic about the Copper World project, expected to boost copper production by 50%. A feasibility study for this project is on track for mid-2026, and the company is considering optimizing the Albion process.

Operational disruptions due to wildfires in Manitoba and protests in Peru, potential increases in capital expenditures for the Copper World project, market volatility in the global copper market, regulatory challenges in expanding U.S. operations, and environmental concerns are among the risks and challenges Hudbay faces.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-hudbay-minerals-q2-2025-beats-expectations-stock-surges-93CH-4189244