Credit Suisse restarts Glencore at outperform, raises target on Anglo American

Credit Suisse gave the mining sector a boost on Thursday as the broker raised its projections for the average price of some key base base and precious metals, while re-jigging its target prices on a large swathe of the mining space in the process.

The outlook continued to be clouded by the possible implications of Brexit but its ultimate impact on global growth remained to be seen, the Swiss broker said.

"At this stage we make no material changes to our underlying demand assumptions at a China and global level," it said in a research report sent to clients.

Specifically, the Swiss broker upped its 12-month target price for iron ore in 2016 to $50 per metric tonne, alongside an increase in its gold price forecasts for 2016 and 2017 of 4% and 10%, respectively.

It now envisaged an average price for the yellow metal in 2017 of $1,450/oz.

In the case of iron ore, the analysts said better steel demand would result in a "relatively balanced" market in 2016 and early 2017.

Nevertheless, "we continue to expect a period of sustained lower prices to force out excess supply," it added, going on to forecast a price of $40 per tonne from the second half of 2017 through 2019.

Credit Suisse also stuck to its negative one to two year outlook for the price of copper.

"Without further price led cuts the market is likely to remain well supplied until 2018/19."

Its preferred equity names in the space were BHP and Glencore, with both sporting 'outperform' recommendations after the broker restarted its coverage of the former with that same stance.

Among the mid-tier names it preferred Boliden, Aurubis and Acacia Mining.

It reiterated an 'underperform' view on Antofagasta, Vedanta and Ferrexpo.

Credit Suisse also upped its target price on shares of Anglo American from 500p to 630p, on Acacia from 380p to 490p, on Randgold Resources from 6700p to 7830p, on Vedanta from 250p to 300p and on Ferrexpo from 22p to 25p.