24 Mar, 2025 13:35 24 Mar, 2025 13:35

JPMorgan upgrades mining & metals sector to ‘overweight’

Rio Tinto

4,813.50p

16:39 27/03/25

-1.35%

-66.00p

JPMorgan upgraded the global mining and metals sector to ‘overweight’ from ‘underweight’ on Monday, as it said that Rio Tinto, Antofagasta, Fresnillo & SSAB are its European key ‘overweights’.

Antofagasta

1,777.50p

17:15 27/03/25

-5.95%

-112.50p

Fresnillo

947.50p

16:40 27/03/25

0.42%

4.00p

FTSE 100

8,666.12

16:44 27/03/25

n/a

FTSE 350

4,727.39

17:09 27/03/25

n/a

FTSE All-Share

4,676.28

17:04 27/03/25

n/a

Mining

13,403.05

17:09 27/03/25

1.49%

196.47

The bank noted that the mining and metals sector has underperformed MSCI Europe by around 50% since January 2023, with M&M equities having underperformed industrial metal prices by about 20% since January 2024.

JPM said the de-coupling/de-rating for equity multiples is an "active inbound-enquiry from investors".

The bank said its 2025 sector outlook expects a "V-shaped" recovery for metal prices and M&M equities in late Q1 as China expands economic policy support and JPM Commodities Research forecasts 15% upside to current copper prices.

It expects the copper price to reach $11,500/t in in the second quarter of 2026.

"We specifically recommend adding exposure to miners with exposure to copper, aluminium, gold, and/or corporates that are strategically vulnerable," JPM said.