Investing.com — Deutsche Bank downgraded to “hold” from “buy” on Friday, slashing its price target to SEK580 from SEK680, after a rock fall at the Swedish miner’s Garpenberg mine signalled a longer disruption than anticipated. Boliden shares last closed at SEK470.20.
Analyst Liam Fitzpatrick said Friday’s company update, which included a conference call, pointed to damage running deeper than the market had priced in.
Deutsche Bank’s Buy rating, initiated last year, had been premised on recovering production and cash flows following operational setbacks in 2023 and 2024, high precious metals exposure and attractive valuation. The Garpenberg incident upended that thesis.
Fitzpatrick warned the stock faces a prolonged period of pressure. Historical precedent from comparable mining incidents shows that “while most of the underperformance takes place over the first 1-2 days, the shares will struggle until there is a clear recovery plan and outlook.”
More clarity is unlikely before late April at the earliest. Boliden’s chief executive indicated further details would accompany first-quarter results on April 28, though new multi-year guidance is not expected until later in the year.
Fitzpatrick was blunt on the broader damage. “The obvious point is that this puts another dent into the perception and credibility,” he said.