Southern Copper Corp’s Stock To Rise 30% Post COVID-19 Crisis?

Southern Copper Corp’s Stock To Rise 30% Post COVID-19 Crisis?

Comparing the trend in Southern Copper Corp's stock over recent months with its trajectory during and after the Great Recession of 2008, we believe that the stock can potentially gain 30% once fears surrounding the coronavirus outbreak subside.. With industrial activity slowing down, the demand for copper from sectors such as automobile, construction, electric appliances, etc has decreased significantly, leading to a sharp drop in copper price to $2.17/pound on March 20, 2020, compared to $2.80 at the beginning of 2020.. Lower prices and decreased shipments (due to fall in demand) is likely to put immense pressure on the company's revenues in 2020, leading to a sharp drop in the company's stock price.. We see SCCO stock declined from levels of around $25 in October 2007 (the pre-crisis peak) to levels of around $9 in March 2009 (as the markets bottomed out) - implying SCCO stock lost as much as 65% from its approximate pre-crisis peak.. Our dashboard -28% Coronavirus crash vs 4 Historic crashes builds a more complete macro picture, and complements our analyses of Coronavirus impact on a diverse set of Southern Copper Corp's multinational peers - from competitor Freeport-McMoRan , and impact of coronavirus on Newmont stock