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(Sharecast News) - Berenberg hiked its target price on mining giant Anglo American from 3,600p to 4,100p on Wednesday, stating the group was "grinding higher" as it approached the close of its merger with Teck Resources.
Berenberg, which reiterated its 'buy' rating on the stock, now takes the the view that Anglo American's shares "have the catalysts to outperform in the coming months", but also noted they have the "ability to materially kick on in 2027" when the merger with Teck Resources closes and the market fully appreciate's "the meaningful upside potential to earnings", both from the inorganic benefits of the deal,vbut also the organic upside from the existing assets.
While the German bank noted that the stock has "done well" so far in 2026, up 14% year-to-date, it thinks that there was still "further upside to come" as catalysts and earnings growth potential appears to be under appreciated by the market.
"We update our model for the Q1 production results and also make some model tweaks including higher short-term coal costs, incorporate recent Teck Resources reporting and adjust our shares in issue count for our NAV," said Berenberg, which added that Anglo's shares were currently trading on 1.59x net asset value and 8.7x FY26 underlying earnings estimates.
Analysts at RBC Capital Markets lowered their target price on construction products business SIG from 870p to 800p on Wednesday as it updated its model to reflect the firm's new divisional structure and trimmed its adjusted underlying earnings estimates by 10% on average through FY28 reflecting weak underlying market conditions.
RBC Capital Markets, which now sits roughly 5% below consensus on average, cut its group FY26 like-for-likes sales growth estimate to 0.4%, down from +1%, split between flat like-for-like growth for the UK and 0.7% LFL growth in Europe, down from 0.8% and 1.1%, respectively.
The Canadian bank also reduced its FY26 adjusted EBIT estimate by roughly 5m to 31.8m, leaving it 2m, or 6%, below consensus.
RBC Capital Markets also said it expects to see "a soft start to the year", reflecting previously flagged poor weather and "challenging conditions",
"For Q1 we forecast sales of 630m (-0.9% yoy), reflecting UK and Europe LFL growth at -2.1% / 0%, respectively," added RBC, which reiterated its 'sector perform' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com