What changed
$SCCO — AVOID 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $4.3B | EPS $1.92 vs $1.81 🟢 | Margin 58.6%
💡 Consensus expects sustained high copper prices and earnings growth, but our variant view is that copper faces demand risks from global economic slowdown, and the valuation leaves no room for disappointment. The market is pricing in perfection, while we see a negative skew in copper price outcomes.
📉 Reward/risk: 0.5:1
🏢 Business Quality: 8/10 - Low-cost, long-life mines in favorable jurisdictions with strong free cash flow generation, but cyclical exposure is high.
📊 Valuation: rich - Trailing P/E ~25x, estimated EV/EBITDA >20x, well above historical 10-15x P/E and peer averages.
🔮 Catalyst: Q2 2026 production report and copper price trends
💰 Entry: $0, stop $170, target $150
📊 Our read: AVOID. Full analysis →
https://stockduty.xyz/s/SCCO0621