Morgan Stanley cuts Ivanhoe Mines stock rating on operational issues

Morgan Stanley has lowered its rating on Ivanhoe Mines Ltd. stock, citing operational issues. The firm has reduced its price target for the shares to Cdn$10.00 from Cdn$11.80, and now considers the stock likely to trade below its intrinsic value until at least March 2027. This assessment comes after approximately 18 months of recurring negative operational surprises.

Ivanhoe Mines' stock has declined by 46% year-to-date, currently trading at $6.05, a 58% drop from its 52-week high of $14.57. Morgan Stanley's most recent estimates for the company's adjusted EBITDA in 2026 have been cut by 12%, projected at $896 million, down from a previous forecast. The analyst firm has also adjusted its earnings per share estimates for Ivanhoe Mines, forecasting $0.04 in 2026, $0.11 in 2027, and $0.33 in 2028.

Despite these challenges, some analysis suggests the stock may be undervalued at its current price level.