Shares of Anglo American and Antofagasta rally after UBS upgrade

Antofagasta’s Los Pelambres copper mine in Coquimbo Region, north-central Chile. (Credit: Consejo Minero)

Shares of Anglo American (LON: AAL) and Antofagasta (LON: ANTO) rallied on Friday as the two miners were upgraded to buy at UBS.

Anglo American shares experienced a robust 7.8% surge in London after UBS upgraded its rating from neutral, while maintaining an unchanged price target.

Analysts, led by Myles Allsop, expressed confidence in the company’s favorable risk/reward profile, anticipating benefits from improving copper prices in 2024-2025, resilient iron ore and met-coal prices, as well as recovering PGM and rough diamond prices.

Simultaneously, Antofagasta’s stock saw a 6% increase following UBS’s decision to elevate the miner’s rating from neutral to buy.

Analysts, led by Daniel Major, noted that after navigating through a challenging two to three years, a combination of organic volume growth and unit cost improvement is expected to propel superior earnings growth compared to most peers.

The accompanying note also highlighted an upward revision of Antofagasta’s price target to £17 (21.5) per share from £16 ($20.2).

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