RBC Capital upgrades Anglo American to ‘outperform’

RBC Capital Markets upgraded Anglo American on Tuesday to ‘outperform’ from ‘sector perform’ and lifted the price target to 2,700 from 2,500p.

It noted the shares are down 37% over the past year versus the SXXP down 18%, and said that at 1.0x and 4.4x 2023 EV/EBITDA "are attractive on our relatively conservative price deck".

RBC continued: "Operational momentum is returning and we think Anglo should be a relative beneficiary from improved sector sentiment."