BMO Capital has reinstated its coverage of Boliden (BDNNY, Financial) with a Market Perform rating. The analyst, Alexander Pearce, set a price target of SEK 300, slightly reduced from the previous target of SEK 310. This rating follows the completion of Boliden's acquisition of Zinkgruvan and Somincor, which is expected to enhance the company's mine supply for its smelting operations.
The acquisition is seen positively as it aims to ease the pressure from current low treatment charges (TCs). Despite this favorable development, BMO Capital considers Boliden's stock to be fairly valued with minimal potential for substantial gains in the near term. This view reflects a cautious outlook on the company's immediate stock performance.
