Handelsbanken downgrades Boliden as Nexa deal brings new geographical risks
BUZZ-Handelsbanken downgrades Boliden as Nexa deal brings new geographical risks ** Handelsbanken downgrades Swedish mining company Boliden BOL.ST to "hold" from "buy", saying the planned acquisition of Nexa Resources NEXA.N introduces new geographical risks
** The brokerage notes the deal to buy a majority stake in Nexa will increase Boliden's exposure to Latin America, which will bring on higher taxes and elevated political risks
** It says Boliden "should trade more in line with diversified miner peers to reflect this new geographical risk", leading to a potentially lower valuation
** But despite introducing shorter life-of-mine assets, the acquisition remains a strategic fit that will immediately boost the company's earnings per share, Handelsbanken adds
** Out of 21 analysts that cover Boliden, four rate it "strong buy" or "buy", 15 "hold", and two "sell", according to LSEG data
(Reporting by Marta Frackowiak)
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