CICC Downgrade Doesn't Deter Southern Copper Stock Rally

Southern Copper Corporation's stock has continued its upward trend, gaining 8.69% in recent trading sessions. The company's strong Q2 earnings report, which saw EPS jump to $2.01 from $1.17 and revenue rise to $4.29B from $3.05B, has contributed significantly to the surge.

The stock has outpaced copper prices during the July 2026 rally, underscoring its leverage to a tightening global copper market. Despite the recent run, major broker CICC downgraded Southern Copper to Market Perform and set a price target of $180.70. This downgrade raises concerns about near-term upside from a traditional valuation lens.

Traders are closely watching SCCO as it continues to ride the momentum wave, with its chart showing strength and steady grinding higher. However, any crack in copper prices or risk sentiment can turn into a fast air pocket due to the high number of traders leaning long.