Scotiabank reiterates Ero Copper stock rating on Brazil operations

Scotiabank has reaffirmed its Sector Outperform rating and price target of Cdn$55.00 on Ero Copper Corp. (TSX:ERO) (NYSE:ERO). The stock has experienced a 115% increase over the past year, reaching $36.19, trading close to its 52-week high of $40.83. On September 15-18, Scotiabank visited Ero Copper’s mines in Brazil. The firm noted the company's operational improvements across its portfolio.

Upgrades at Caraiba are expected by late 2027, while enhanced results at Tucuma and Xavantina are projected starting in the fourth quarter of 2026. Scotiabank’s assessment considers valuation, near-term copper growth potential, high reliance on gold, and robust free cash flow yield. Ero Copper remains undervalued according to InvestingPro analysis, with its Fair Value exceeding the current market price.

The company exhibits strong financial health with a score of 3.57 out of 5. The visit to the mines in Brazil further solidified Scotiabank's belief in Ero Copper's potential for improved operational and financial outcomes. Analysts have offered differing opinions on Ero Copper's financial status. BMO Capital reiterated its Outperform rating and set a price target of Cdn$52.00, recognizing progress across the company’s assets.

Freedom Broker, however, downgraded Ero Copper to a Hold rating from Buy, citing maintained 2026 copper production guidance and C1 cash cost expectations. BofA Securities upgraded Ero Copper to a Buy rating, emphasizing the stock's valuation advantages compared to its peers and raising its target to Cdn$49.00. These contrasting viewpoints illustrate the varied perspectives held by analysts on Ero Copper’s financial standing and future prospects.