Bernstein Downgrades Antofagasta After Rally Pushes Shares Well Past Price Target

Antofagasta (LON: ANTO) shares have been downgraded by Bernstein, with analyst Bob Brackett cutting the firm's rating for the stock to Market Perform from Outperform.

The broker kept its price target unchanged at 1,950p, citing valuation concerns after a sharp rally.

Bernstein said the copper macro backdrop has fuelled Antofagasta’s surge, but noted the shares now trade above its target price.

The downgrade comes despite a strong year for the miner, whose stock has climbed 63.3% year to date, including a further 14% gain in the last week. Shares jumped 9.3% on Wednesday alone, highlighting investor enthusiasm for copper as demand expectations rise.

The move from Bernstein also follows a string of price target increases from other brokers over the summer. Citi and Barclays both lifted their targets to 2,200p in July, with Citi maintaining a Buy rating while Barclays stuck with Equal Weight.

Deutsche Bank most recently raised its target to 2,000p in August but retained a Hold rating, while Morgan Stanley took a more cautious stance with Equal Weight ratings alongside modest target increases.

According to TradingView data, seven analysts currently rate Antofagasta a Buy, 12 a Hold and two a Sell. The consensus target of 2,061p sits 21% below current market levels, suggesting the stock’s rally may have outpaced expectations.

While the copper price cycle continues to attract bullish sentiment, Bernstein’s downgrade highlights growing caution over whether Antofagasta can sustain its recent gains without a further improvement in fundamentals.