BCP says "hold" SPCC shares

Peru's Banco de Credito (BCP) has maintained its "hold" recommendation for Southern Peru Copper (SPCC, NYSE: PCU) shares. The bank's analysts said SPCC stock presented an upside of 14.5% and set a target price of US$42.7 apiece for the copper miner's shares in 2004. The bank forecasts a copper price of US$0.90 in 2004 and US$0.95 "from then on." However, given the expected rise in international interest rates next year in the US, BCP cautioned that variations in the discount rate are likely to have more impact on SPCC shares than copper prices, leading to its "hold" recommendation. BCP adds that given the large rise in the price of SPCC shares this year, up 163%, it might also be a good a moment to rake in the profits in the short term. SPCC, one of the largest 10 copper producers worldwide, registered a net profit of US$36.1mn in the third quarter, up 151% compared to same-quarter last year, thanks to larger sales volumes and higher metal prices. The company is owned by Grupo Mexico (54.2%), Cerro Trading Company (14.2%), Phoenix-based Phelps Dodge (14.0%) and other shareholders (17.6%).