Amid Copper Selloff, Barclays Likes Southern Copper And Freeport-McMoRan
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
|Dec 2016||Morgan Stanley||Downgrades||Equal-Weight||Underweight|
|Dec 2016||Credit Suisse||Upgrades||Underperform||Neutral|
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