Boliden AB has been downgraded from Neutral to Sell by UBS, with a price target of SEK 300.00. The decision is based on concerns about specific challenges that could affect the company's future performance.

Despite a recent 20% increase in the stock price, driven by a broader market rally in industrial metals and better-than-expected third-quarter results for 2024, UBS believes that Boliden faces obstacles such as declining ore grades at its Aitik and Garpenberg mines, uncertainty surrounding the Kevitsa mine, and reduced Treatment and Refining Charges (TCRCs) in its smelting operations.

UBS also highlights potential risks related to mergers and acquisitions. The firm suggests that the market may not be fully considering the earnings pressures that Boliden could face in 2025, and therefore sees the recent stock rally as an opportunity to reconsider a Sell position.