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Amid Copper Selloff, Barclays Likes Southern Copper And Freeport-McMoRan

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Amid Copper Selloff, Barclays Likes Southern Copper And Freeport-McMoRan
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Barclays took a neutral position on the copper sub-sector in a report on U.S. Metals & Mining issued Thursday.

Analyst Matthew J. Korn expected “the bullish impact of lower-than-expected metal supply to outweigh a slowdown in Chinese consumption growth and push copper prices higher.”

Both Southern Copper Corp (NYSE: SCCO) and Freeport-McMoRan Inc (NYSE: FCX) “boast high-probability mining expansion projects over the next two years, but we consider pure-play [Southern Copper's] overall risk profile more favorable,” according to the report.

Korn added that Freeport-McMoRan’s “copper business is world-class, but we expect the stock to remain pressured by uncertainty around its Indonesian operations and, more acutely, by its strategy to invest heavily into the E&P business just as oil prices now look likely to stay lower for longer.”

The firm maintained an Overweight rating on Southern Copper, which recently traded at $26.19, up 1.99 percent.

Freeport-McMoRan was rated Equal-weight and recently traded at $18.89, up 3 percent.

Image credit: Raike, Wikimedia

Latest Ratings for SCCO

DateFirmActionFromTo
Dec 2016Credit SuisseUpgradesUnderperformNeutral
Aug 2016HSBCUpgradesSellHold
Aug 2016BarclaysMaintainsEqual-Weight

View More Analyst Ratings for SCCO
View the Latest Analyst Ratings

Posted-In: Barclays CopperAnalyst Color Long Ideas Commodities Markets Analyst Ratings Trading Ideas Best of Benzinga

 

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