He wrote in a note:

Given the little implied return to our target, the shares' relatively in-line valuation to our coverage universe peer group, combined with the company's higher-cost profile in a still-shaky copper price environment, we can no longer justify a 'buy' rating at current levels.

That said, he also wrote that Quadra remains an attractive investment vehicle for longer-term holders given the company's "significant" near-term growth profile and its leverage to an eventual recovery in copper prices (which have already jumped more than 60% from their lows last year).

Quadra is trading at estimated-value-to-EBITDA multiples of 7.8 times for 2009 and 3.6 times for 2010, Mr. Wowkodaw wrote. That compares to averages of 8.3 times (for 2009) and 4.1 times (for 2010) for the mid-cap base metal companies that Canaccord covers.