RBC Capital upgrades Antofagasta to 'sector perform'
RBC Capital Markets upgraded on Thursday to 'sector perform' from 'underperform' but cut the price target to 1,700p from 1,800p.
The bank said copper will continue to be kicked around by trade war escalations and de-escalations.
"Our concerns on possible downside scenarios have been tempered by price sensitive demand coming out of China," it said.
"However, on the flip side there will be lasting economic damage caused by the uncertainty that likely removes any material upside over the next twelve months."
It noted that since 25 March, Antofagasta shares and the LME copper price have fallen 20.5% and 9.3%, respectively.
"We are more comfortable on the risk profile at these levels and upgrade to sector perform," RBC said.
At 1230 BST, the shares were down 1.3% at 1,534.50p. They are trading ex-dividend.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.