Deutsche Bank reiterates 'sell' for Antofagasta on outlook for soft copper prices
Antofagasta
1,713.50p
12:45 08/11/24
-5.25%
-95.00p
Analysts at Deutsche Bank reiterated their 'sell' stance and 820.0p target price on shares of Antofagasta after attending a roundtable with its chief executive officer.
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They labelled Antofagasta a "quality copper stock" and expressed a liking for management's phased and disciplined approach to project development.
However, with copper prices set to remain beneath mid-cycle levels for the foreseeable future, they believed the shares' current valuation was "difficult to justify" on both a relative and absolute basis.
On their estimates, the shares were sporting a 2020 enterprise value-to-earnings before interest, taxes, depreciation and amortisation multiple of eight times and a price-to-earnings multiple of 25.0.