Analyst Briefing: Goldman Sachs Upgrades Glencore to Buy
Goldman Sachs upgraded Glencore PLC (LON:GLEN) from a Neutral to a Buy rating on Thursday, arguing that the miner is well positioned to benefit from stronger fundamentals in copper, zinc and metallurgical coal, while maintaining a cautious outlook for iron ore.
The brokerage lowered its 12‑month price target to £6.30 from £6.60, noting that the recent sector‑wide de‑rating of mining stocks creates an attractive entry point. Despite the reduction, the target still implies meaningful upside from the current share price.
Following the announcement, Glencore shares rose 3.5% to 507.80 pence in London trading, outpacing the broader FTSE 100, which gained about 0.7%.
Commodity Outlook
- Copper: Goldman expects copper prices to stay supported by tightening mine supply and the prospect of U.S. import tariffs.
- Zinc: Zinc markets are seen benefiting from ongoing concentrate shortages.
- Metallurgical Coal: The outlook turned more constructive after supply disruptions in China’s Shanxi province and anticipated seasonal restocking demand from India and China later in the year.
- Iron Ore: The bank retains a cautious stance, warning that softer steel demand could push iron‑ore prices toward $90‑$95 per tonne.
Additional Growth Drivers
Goldman highlighted further upside potential from Glencore’s marketing division, citing elevated energy‑market volatility and physical dislocations across copper and aluminium markets. The broker also pointed to possible asset monetisations—including infrastructure assets, Glencore’s remaining stake in Bunge, and selected mining investments—that could enhance shareholder returns over the next 12 to 18 months.
Sector‑wide View
Goldman reaffirmed a constructive view on European metals producers with exposure to copper and aluminium, reiterating Buy ratings on Norsk Hydro, Antofagasta, and Lundin Mining, while maintaining caution on iron‑ore producers.