| Analyst Sees Bright Spot In Copper As Miners Dig Deeper In Hole | |
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Mining stocks are likely to dig deeper in the short-term but the copper segment should see a recovery strong recovery beginning in 2017, an analyst said Tuesday.
Jefferies Christopher LaFemina called Freeport-McMoRan Inc. (NYSE: FCX) "one of our top picks in the sector" and said copper is facing supply constraints that are likely to push up prices of the metal significantly.
The analyst also maintained Buy ratings on copper miners First Quantum Minerals Ltd. (TSE: FM), Antofagasta plc (LON:ANTO) and Glencore PLC (LON: GLEN).
But in the short-term, mining stocks across all segments will fall on further weakness in prices of iron ore and limited near-term gains for copper, other base metals, coal and gold, according to LaFemina.
Despite a Buy rating on Freeport, LaFemina cut his price target by 40 percent to $27 as the company experiences a tough year for operations.
The shares are off 40 percent in the past six months and Freeport looks likely to soon cut its dividend in the face of high debt and negative cash flow.
Copper prices will languish in a trough during the current year but gain 23 percent by 2017 to $3.25 a pound, according to LaFemina's estimate. The price for the metal should rise to $4 in 2018 as demand outstrips supply.
Given the bullish longer-term copper outlook, LaFemina called Freeport's current share price attractive with a major turnaround in prospect.
Latest Ratings for FCX
Date | Firm | Action | From | To |
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Mar 2015 | Jefferies | Maintains | | Buy | Feb 2015 | Deutsche Bank | Maintains | | Buy | Feb 2015 | Bank of America | Downgrades | Buy | Neutral |
View More Analyst Ratings for FCX
View the Latest Analyst Ratings
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Antofagasta plc
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PRODUCER |
CODE : ANTO.L |
ISIN : GB0000456144 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Antofagasta is a copper and gold producing company based in United kingdom. Antofagasta produces copper, gold, molybdenum and silver in Chile, develops copper and gold in Chile and in Pakistan, and holds various exploration projects in Australia, in Chile, in Peru and in Sweden. Its main assets in production are MICHILLA, EL TESORO MINE, LOS PELAMBRES, EL TESORO, ESPERENZA (OXIDES) and ESPERANZA (SULPHIDES) in Chile, its main assets in development are REKO DIQ in Pakistan and LINCE/MICHILLA in Chile and its main exploration properties are PUNT HILL and PYRAMID ( ALASKA) in Australia, KIRUNA SOUTH in Sweden, CORDILLERA DE LAS MINAS in Peru and ANTUCOYA in Chile. Antofagasta is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is GBX 2 223.1 billions as of today (US$ 2 594.8 billions, € 2 425.1 billions). Its stock quote reached its lowest recent point on October 18, 2002 at GBX 100.00, and its highest recent level on April 26, 2024 at GBX 2 255.00. Antofagasta has 985 856 000 shares outstanding. |