Teck Resources downgraded at RBC on valuation, zinc and coal outlook

|About: Teck Resources Limited (TECK)|By:, SA News Editor

Teck Resources (TCK -4%) tumbles as RBC downgrades shares to Sector Perform from Outperform, mostly on valuation, but the firm says it would be buyers if shares slip below $17.

RBC says it likes TCK's long-term prospects, particularly its solid operating performance, high quality asset base, exposure to zinc and the increase in cash flow expected from the Fort Hills oil sands project beginning in 2018.

But the firm also says strong price gains since May in the coal market likely will cool off, and that zinc prices will not be able to drive the stock much higher on their own since TCK gets just 19% of its revenues from the metal.

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