It was all change for the miners, with four investment banks providing fresh analysis – and new calls – on the sector’s movers and shakers.
JP Morgan Cazenove’s kicked off its commentary by saying the year had begun with “euphoria reminiscent of 2009/10”; a period that marked the last major bull run for the diggers.
It added the mining and steel stocks represented what it called default exposure to a “global growth, rebound and reflation”.
“[The sector] has the cheapest trading multiples in Europe and market-leading capital returns,” the commentary continued.
“Parallels with previous economic crises suggest the sector has yet to peak as momentum, rotation to value, US dollar weakness and deep liquidity are expected to be dominant themes in the first half of 2021.”
That said, its changes were fairly timid. It went to ‘overweight’ from ‘neutral’ on Antofagasta (LON:ANTO), lifting its price target to 1,170p.
In same note JPMC downgraded Anglo American (LON: AAL) to ‘neutral’, largely cancelling the impact Goldman Sachs’ move to ‘buy’ on the same stock (target price 3,500p from 2,400p).
Goldman, meanwhile, gave Glencore (LON: GLEN) the red pen treatment, changing its call to ‘neutral’, while Barclays retained its bullish stance on the stock, raised its target by 45p to 345p and asked, “could 2021 be the year?” Who knows, certainly not the investment banking community by the look of it.
Finally, Liberum’s top sector picks were Taseko Mines (LON:TKO) and Glencore.