8 Dec

Which Copper Miner Is Wall Street Betting On in 2018?

WRITTEN BY Mohit Oberoi, CFA

Analyst ratings

We’re now getting towards the end of 2017. Overall, it has been a strong year for companies in the metals and mining space. Commodities have built on their 2016 gains, and metals including copper and aluminum have moved to higher price levels. Higher commodity prices have supported mining companies’ price action, and most miners are trading with strong yearly gains, outperforming broader markets.

Which Copper Miner Is Wall Street Betting On in 2018?

Southern Copper (SCCO) and First Quantum Minerals (FM) have gained 32% and 8.5%, respectively, in 2017 based on December 6 closing prices. Glencore (GLEN-L), the trading and mining giant, has risen 22.4% so far in 2017. Teck Resources (TECK), which also mines zinc and coking coal, has risen 13.8% in 2017.

Copper prices

Copper saw a literal one-way rise since July. However, we saw copper prices consolidate in November after a strong October. The LME (London Metals Exchange) three-month copper fell ~0.3% in November. Copper has been weak in December as well. Based on December 6 closing prices, copper is up 19% in 2017, and the red metal has pared some of its 2017 gains.

Series overview

In this series, we’ll see how analysts are rating leading copper miners as 2017 draws to a close, which could help us understand how Wall Street sees different copper producers as we head into 2018. We’ll also see how vehicle electrification could impact mining companies.

Let’s begin by looking at Freeport-McMoRan’s (FCX) ratings and target prices.

Latest articles

CrowdStrike (CRWD) fell 9.5% today to close at $54.52. Analyst Walter Pritchard initiated coverage on CRWD with a “sell” rating and a target price of $43.

Micron (MU) stock was up 4.21% on Friday and closed at $45.10. MU was trading 12.2% below its 52-week high of $51.39 for a market cap of $49.9 billion.

Top utility stocks trended lower and lost 1.3% last week. Broader markets were positive but cautious on trade talk optimism, gaining 0.7% last week.

Analyst Ming-Chi Kuo expects Apple to launch the iPhone SE2 in Q1 2020. Priced at $399, it could help Apple gain traction in India and Southeast Asia.

Disney-owned Hulu plans to introduce video downloads, which Netflix has offered for three years. Disney hopes to narrow Netflix’s competitive advantage.

Ireland’s privacy watchdog has concluded its investigation into Facebook over its compliance with the European Union’s data protection law.