Anglo American and Antofagasta shares rally after upgrades

By Steve Goldstein

Anglo American and Antofagasta were rallying Friday in a European stock market playing catch-up to Wall Street, as the two miners were upgraded to buy at UBS.

Anglo American shares (UK:AAL) surged 7% as UBS lifted its rating to buy from neutral while keeping its price target unchanged. "We believe the risk/ reward is now attractive with Anglo to benefit from improving copper prices in 2024/25, resilient iron ore & met-coal prices, as well as recovering PGM & rough diamond prices," said analysts led by Myles Allsop.

Antofagasta shares (UK:ANTO) rose 5%, as UBS also lifted the miner to buy from neutral. Following a challenging two to three years, a combination of organic volume growth and unit cost improvement will drive superior earnings growth to most of its peers, said the note from analysts led by Daniel Major. Antofagasta's price target was lifted to GBP17 per share from GBP16.

The major European stock indexes advanced after the 520-point surge in the Dow Jones Industrial Average DJIA, with the German DAX DX:DAX, French CAC 40 FR:PX1 and U.K. FTSE 100 UK:UKX all registering gains between 0.6% and 0.9%.

U.S. stock futures were steady ahead of remarks from Fed Chair Jerome Powell and key manufacturing data.

-Steve Goldstein

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12-01-23 0508ET

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