May. 14 at 6:30 AM
$HBM Take over Optionality and target price raise at Scotiabank!
search (May 12, 2025): OUR TAKE: Positive. HBM reported markedly better-than-
anticipated Q1/25 results driven by a stronger operating performance across the portfolio. All 2025
guidance was reaffirmed. The company generated positive FCF for the seventh consecutive quarter.
Overall, given the surprisingly strong Q1 beat, we view the update as positive for the
shares.We rate HBM shares SO based on valuation, high leverage to Cu-Au prices, and takeover
optionality. Our revised 12-month target of C
$12.50 per share (vs. C
$12.00 previously) is based on a
50/50 weighting of 5.5x our avg. 2025E-26E EV/EBITDA and 1.5x our 8% NAVPS