{
  "id": 12584080,
  "title": "Morgan Stanley upgrades Nexa Resources stock rating on zinc price outlook",
  "url": "https://urgent.news/2026/10/07/morgan-stanley-upgrades-nexa-resources-stock-rating-on-zinc-price",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T08:33:05.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/morgan-stanley-upgrades-nexa-resources-stock-rating-on-zinc-price-outlook-93CH-4935848"
  },
  "original_language": "en",
  "account": "Morgan Stanley has upgraded Nexa Resources' stock rating to Overweight from Equalweight and increased its price target to $14.20 from $13.50. The firm noted that the recent 6% drop in shares, despite a 5% rise in zinc prices and an 8% increase in copper prices, presents a compelling entry point. Commodity analysts at Morgan Stanley anticipate a 13% upside in zinc prices in Q1 2027 and a 5% increase by the end of 2027. Such price forecasts could drive earnings per share up by 28% to 20% and the firm's 2027-2028 EBITDA estimates by 51% to 53%. The current valuation of Nexa is below its five-year averages, with a price-to-earnings ratio of 6.76 and an EV/EBITDA ratio of 1.5. This makes the stock undervalued, according to InvestingPro's Fair Value analysis. The new price target suggests approximately 14% upside. Morgan Stanley also sees potential additional gains if Boliden acquires Nexa's minority shareholders at a 25% to 50% premium, which could push the share price to $16.50 to $19.80, implying a 33% to 59% upside. The stock is currently trading at a 6% discount to the terms of Boliden's future voluntary tender offer. Nexa reported strong Q2 2026 results, with revenue at $907.9 million, exceeding expectations but earnings per share falling short at $0.52. Boliden AB has agreed to buy Votorantim's 64.68% stake in Nexa through an all-share transaction, valuing Nexa shares at $15.29. Scotiabank has raised its price target for Nexa to $15.00 while maintaining a Sector Perform rating.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "This French utility stock is a tactical opportunity into year-end: Morgan Stanley",
        "url": "https://urgent.news/2026/10/07/this-french-utility-stock-is-a-tactical-opportunity-into-year-end",
        "published": "2026-10-07T06:43:23.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}