RBC Capital upgrades Antofagasta to 'sector perform'
RBC Capital Markets upgraded Antofagasta 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.