Market Overview

Goldman Sachs Initiates On A Slew Of Metal and Mining Stocks

Goldman Sachs Initiates On A Slew Of Metal and Mining Stocks

Goldman Sachs initiated bullish coverage on the metals and mining space, but the firm said investors still need to be selective about which stocks to buy.

The Analyst

Goldman analyst Matthew Korn set the following ratings and price targets for metals and mining stocks:

  • Initiated Freeport-McMoRan Inc (NYSE: FCX) with a Buy rating and $23 target.
  • Nucor Corporation (NYSE: NUE) with a Buy rating and $78 target.
  • Steel Dynamics, Inc. (NASDAQ: STLD) with a Buy rating and $59 target.
  • Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) with a Buy rating and $42 target.
  • Constellium NV (NYSE: CSTM) with a Buy rating and $16 target.
  • Commercial Metals Company (NYSE: CMC) with a Sell rating and $25 target.
  • Allegheny Technologies Incorporated (NYSE: ATI) with a Sell rating and $26 target.

The Thesis

Overall fundamentals in the North American mining and metals markets are very strong, Korn said.

“Commodity prices are high, the supply side for metals and bulks looks more rational than it has been in years, M&M balance sheets are healthy (or at least healthier), and consumption has momentum from coordinated global growth, even as China gradually slows,” Korn said in the note.

Korn said copper is the most attractive metal for Goldman at the moment, and Feeport McMoRan has the most copper exposure of the names mentioned. In addition, Korn said U.S. steel mills are expanding capacity with the support of new trade policy and aluminum demand is strong driven by a booming transportation industry.

Price Action

Here’s a look at how the stocks now covered by Goldman were following the initiation Tuesday:

  • Freeport McMoRan was up 2.1 percent.
  • Nucor was up 0.6 percent.
  • Steel Dynamics was up 0.2 percent.
  • Schnitzer was up 1.3 percent.
  • Constellium was up 1.9 percent.
  • Commercial Metals was down 0.4 percent.
  • Allegheny Technologies was down 1.2 percent.

Related Links:

Analyst: For US Steel, Tariffs Are A Sell-The-News Event

After Trump's Announcement Of Steel, Aluminum Tariffs, The Sell-Side Reacts

Latest Ratings for FCX

Oct 2020Credit SuisseMaintainsNeutral
Sep 2020Morgan StanleyUpgradesEqual-WeightOverweight
Aug 2020Morgan StanleyDowngradesOverweightEqual-Weight

View More Analyst Ratings for FCX
View the Latest Analyst Ratings


Related Articles (FCX + NUE)

View Comments and Join the Discussion!

Posted-In: Analyst Color Price Target Commodities Initiation Top Stories Markets Analyst Ratings Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at