Anglo American and Antofagasta stocks experienced a significant surge following a favorable UBS upgrade, led by analysts Myles Allsop and Daniel Major. The upgrade showcased a positive risk/reward profile for Anglo American and a notable elevation of Antofagasta’s rating from neutral to buy.
Allsop expressed confidence in the company’s potential gains from improving copper prices in 2024-2025, along with resilient iron ore, met-coal prices, and anticipated recovery of PGM and rough diamond prices. On the other hand, Major noted the expectation of superior earnings growth compared to most peers, as a result of overcoming a challenging period and a projection of organic volume growth and unit cost improvement.
The note also unveiled an upward revision of Antofagasta’s price target to £17 ($21.5) per share from £16 ($20.2).
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