Antofagasta Downgraded to Reduce at Peel Hunt

Antofagasta (LON: ANTO) shares edged lower in Friday’s session after the stock was downgraded to Reduce from Hold at Peel Hunt.

The miner’s share price is down 0.8% at the time of writing, around the 1,791p mark, after hitting a low of 1,766p earlier in the session. However, in 2023 it has rallied 15%, while it has climbed more than 50% in the last three months.

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Peel Hunt analyst Peter Mallin-Jones assigned the stock a 1,400p price target, telling investors in a research note that it is trading at multiples well above the average for the last five years.

On January 18, Antofagasta released its fourth-quarter production report, stating that it “ended the year on a strong note, achieving full-year production and cost guidance despite the ongoing drought in Chile and higher input costs.”

Antofagasta reported copper production for the full year of 646,200 tonnes, and 195,700 tonnes in Q4. The company’s Gold production for the full year was 176,800 ounces.

Following the report, JPMorgan analyst Dominic O’Kane lowered the firm’s price target on Antofagasta to 1,280p from 1,410p, maintaining a Neutral rating on the stock, while Credit Suisse raised its price target on Antofagasta to 1,800p from 1,750p, keeping a Neutral rating on the shares.

Earlier this month, Barclays analyst Ian Rossouw downgraded Antofagasta to Equal Weight from Overweight, telling investors in a research note that copper demand analysis indicates downside versus Street estimates. The analyst sees a surplus ahead.