BofA Securities names top mining stocks as copper outlook brightens

Investing.com -- BofA Securities has updated its mining sector rankings, elevating several major producers as the investment bank raised its long-term copper price forecast by 20% to $12,000 per ton for 2026. The upgrade reflects persistent supply issues that continue to push copper prices higher, even as analysts monitor risks from potential energy shocks and data center capital expenditure pauses.

The bank's commodity strategists noted that after more than 12 months of policy surprises, volatility risks from war in the Middle East persist. However, copper continues to outperform expectations primarily due to supply constraints. Meanwhile, higher interest rates and a stronger dollar present headwinds for gold prices. BofA also trimmed its 2027 aluminum forecast by 5% to $3,625 per ton.

BHP

BofA Securities upgraded the world's largest copper producer to Buy with a price objective of A$68. The upgrade positions BHP as the top pick among large-cap mining stocks, benefiting directly from the bank's increased long-term copper price forecast to $12,000 per ton.

Glencore

Rated Buy with a price objective of GBp650, BofA Securities highlighted the company's copper growth options as a key attraction. Analysts are also monitoring developments around a potential Australian listing for the diversified miner.

Norsk Hydro

The aluminum producer received a Buy rating with a price objective of NOK98. BofA Securities described the pure-play aluminum company as offering interesting risk-reward characteristics in the current market environment.

Antofagasta

BofA Securities maintained a Buy rating with a price objective of GBp4700 for the blue-chip copper producer. The bank noted the company offers approximately 30% volume growth potential, making it an attractive play on rising copper demand.

The analysts acknowledged that decarbonization efforts and artificial intelligence could serve as secular positive drivers for metal demand. They cautioned, however, that investors should be prepared for potential drawdowns of 10% to 20%, noting that during China's super cycle from 2002 to 2008, markets experienced multiple corrections despite overall upward trends.

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