** CIBC starts coverage of Canadian miner with “outperformer”, PT $38; upside of ~79 pct to its Thursday close
** Diversified portfolio of quality assets in low sovereign risk jurisdictions raises copper and zinc exposure, CIBC’s preferred commodities
** Sees strong contribution from metallurgical coal production, startup of Teck’s 20 pct-owned Fort Hills project
** Teck gains from stronger balance sheet, with debt to equity falling from peak of 55 pct in 2015 to 33 pct in 2017 end
** Ramp up of oil sands project and regulatory approval of Teck’s Quebrada Blanca Phase 2 copper project in Chile are main “positive catalysts” short-term
** On YTD basis, TECK up ~6 pct, underperforming an ~22 pct rise in zinc and copper prices (Reporting by John Benny in Bengaluru)
