Copper prices are at their lowest levels in almost a year, but it could provide investors with a buying opportunity. Wall Street analysts have turned bullish on the metal, with Citi among the banks expecting prices to soar. In its base case, copper could rise by nearly 50% in 2025 to $12,000 per ton, while in the bull case, prices could double to $15,000 per ton, Citi said in a May 31 note. “We recommend consumers and long-term investors gradually build copper exposure over the next 6 months or so. We see increasingly attractive risk-reward with this strategy,” it said. In another May report, Goldman Sachs gave copper prices 25% upside over the next 12 months, rising to $11,000 per ton. Copper prices suffered a nearly 6% decline in May — on pace for the worst month in almost a year since June 2022, according to CNBC analysis. But the market is currently in a “significant deficit” phase, said Goldman analysts. “China demand is outperforming growth concerns,” Goldman wrote. “Whilst China’s demand strength has been underappreciated, it is equally important to recognise the persistence of a negative shock in mine supply as a tightening effect on this market.” Overall, long-term global demand for copper is growing, thanks to continued policy support for renewables and electric vehicles, according to Goldman. The metal has a wide range of applications throughout construction and industry. It’s also a critical component in electric vehicles, used in batteries, wiring, charging points and more. How to invest in copper For those looking to buy into the sector, CNBC Pro screened for stocks in the Global X Copper Miners ETF . The following stocks have “buy” ratings from 50% or more of analysts covering them, and average price target upside of more than 10%. Canadian miner NGEx Minerals stood out as having the highest potential upside — at nearly 100%, with a 66% buy rating from analysts covering the stock. U.S.-listed Teck Resources also made the list, with more than 10% upside and a 72% buy rating. Filo Mining , another Canadian miner, had the highest buy rating at 91%. Investors can also opt for exchange-traded funds that invest in copper futures contracts, such as the United States Copper Index ETF and the iPath Series B Bloomberg Copper Subindex Total Return. — CNBC’s Michael Bloom contributed to this report.
Tag: Global X Copper Miners ETF
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Goldman and others are bullish on copper. Here are some stock ideas that analysts love
The demand surge in metals such as copper, nickel and lithium “has only just begun,” according to Goldman Sachs. In fact, the bank said “green demand” is dominating fundamentals and is underappreciated by the market currently. “Already, the acceleration of investment in electric vehicles, renewable power generation and energy storage has helped metals demand overcome a property downturn in China and cyclical slowdown in the West,” the bank’s analysts wrote in a March note. Demand for copper in particular is set to rise to 17% of total demand for so-called green metals by 2030, according to Goldman, from 7% currently. And if a global path toward net-zero emissions emerges, the bank estimates that an additional 54% of copper would be needed by 2030. Copper has a wide range of applications throughout construction and industry and beyond. It’s a critical component in electric vehicles, used in batteries, wiring, charging points and more. Meanwhile, UBS in a separate March note was also bullish on the outlook for copper demand, saying there is a $60 billion opportunity in EV charging infrastructure. Accelerating U.S. EV demand, coupled with infrastructure incentives, implies that between 1.1 million and 5.7 million chargers will need to be installed by 2030, versus 130,000 today, according to UBS. This will lead to a significant rise in copper demand, the bank added. Commodities are also considered by some to be an attractive investment amid the current volatile markets. Stock screen For those considering buying into copper, CNBC Pro screened for stocks in the Global X Copper Miners ETF as well as the Sprott Junior Copper Miners ETF . The resulting stocks have an upside to average price target of at least 10%, and a buy rating from 50% or more analysts covering them, according to FactSet data: Canadian mining company Los Andes Copper stood out for having the highest potential upside – 70% — and a buy rating from all analysts covering it. Copper and gold miner SolGold was the only other firm with a 100% buy rating, although its upside was more limited at over 10%. Filo Mining received the next highest potential upside from analysts, at nearly 47%. — CNBC’s Michael Bloom contributed to this report.