9.36AM Citi lifts earnings forecasts for copper miners Alex Gluyas
Citi has upgraded its earnings estimates for copper stocks after its commodities team pulled forward price forecasts for the metal.
The broker lifted its copper price projections to $US12,000 a tonne for 2025, from $US10,000 a tonne previously.Citi sees the metal consolidating in the $US9500 to $US10,500 a tonne range in the September quarter, which it believes will be a buying opportunity that will then rocket prices to a record $US12,000 a tonne by the end of this year.
While Sandfire Resources is the only pure-play copper exposure in the ASX 100, Citi believes investors will now “dig deeper” for exposure to the metal. The broker subsequently upgraded the stock to “neutral” from “sell”, and lifted its price target to $8.90.
Citi reiterated its preference for BHP over Rio Tinto due to its copper exposure, and Evolution Mining over Northern Star Resources.
^ from the AFR today
A1M Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
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