No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Analysts at Berenberg upgraded copper miner Atalaya Mining from 'hold' to 'buy' on Thursday, admitting that they were "late to the party".
Berenberg said Atalaya's shares had enjoyed "a strong run" year-to-date, with copper prices up over 20% on tight markets and the firm itself delivering "a solid operational year", with good cash-flow generation, while also benefiting from index buying following a corporate redomicile that saw the shares enter the FTSE 250.
The German bank, which raised its target price on the stock from 630p to 760p, thinks that the Atalaya can benefit from a number of catalysts that it believes will drive the shares higher.
"We adjust our model for the recent Q3 results (while also making small model tweaks) and lift our EV/EBITDA multiple to 8x (from 6x), reflecting the current market premium for copper equities," said the analysts.
Berenberg added that Atalaya's shares were currently trading on 1.19x net asset value and 4.5x 2026E underlying earnings.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.