Boliden Kept at Sector Perform as RBC Notes Potential Nexa Resources Acquisition

08:28 AM EDT, 07/29/2026 (MT Newswires) -- RBC Capital Markets maintained its investment stance on Boliden (BOL.ST), noting long-term strategic benefits of acquiring zinc producer Nexa Resources against potential dilution risks for existing shareholders. "Boliden's valuation premium makes a Nexa acquisition potentially accretive, but the market is focused on a potential equity raise. We estimate that to keep gearing within target ratios, Boliden would require $700m-1bn in equity under a 100% acquisition, with requirements falling materially if only the 65% stake is acquired and/or if a portion of production is hedged forward. We continue to see Boliden as fairly priced at these levels and reiterate our Sector Perform rating and SEK 500/sh price target," according to a Tuesday note. The research firm said investor feedback indicated a baseline assumption of a 20% premium, which should make the transaction accretive in most metrics. However, Berenberg pointed to concerns of a discounted equity raise, given Boliden's 10% year-to-date underperformance relative to peers. "Boliden targets a gearing ratio of 20% through the cycle, though the group is willing to allow gearing to rise to 55% under a stress scenario, levels that we see as being exceeded in most acquisition scenarios," analysts added. RBC expects a merged Boliden-Nexa entity would rank as the world's third-largest zinc producer, with a combined output of 695,000 tonnes of zinc and 153,000 tonnes of copper.