Deutsche Bank's top picks in mining as copper market faces potential squeeze
Investing.com -- The mining sector has performed strongly through the third quarter and year to date, driven primarily by a surging copper price. In recent weeks, however, rising bond yields and a stronger dollar have weighed on markets, and Deutsche Bank notes that macro risks remain elevated.
Even so, Analyst Liam Fitzpatrick believes copper fundamentals are strong, with the market potentially facing an acute squeeze over the coming quarters.
That view is reflected in its main 2027 price changes: copper is raised to $14,500/t from $12,500/t, aluminium to $3,050/t from $3,000/t, while iron is trimmed to $98/t from $100/t.
These price changes feed directly into the earnings picture. Weak iron ore prices have turned mark-to-market earnings risk slightly negative for the majors, whereas the copper names remain firmly in upgrade territory, with Deutsche Bank’s spot 2027 EBITDA estimates around 20% above consensus.
Against this backdrop, Deutsche Bank’s top picks are Anglo Teck, Glencore, Freeport-McMoRan, First Quantum Minerals and China Hongqiao Group.