JP Morgan has begun coverage of Atalaya Mining, the copper producer, with an "overweight" rating and a price target of £13.30 a share, implying about 30% upside.
Atalaya, valued at around $2.1 billion and a member of the FTSE 250, runs the historic Riotinto mine in Andalusia, southern Spain.
The bank highlighted the company as one of the few pure-play copper producers based in the European Union, giving investors rare domestic exposure at the heart of Europe's push to secure critical raw materials.
Management is targeting medium-term output of about 100,000 tonnes a year of copper equivalent.
That growth is expected to come mainly from the greenfield Touro project in Galicia, with permitting due in the second half of 2026, alongside brownfield projects around Riotinto.
JP Morgan pointed to a mix of strong volume growth, low capital intensity and a cheap valuation against mid-cap peers as grounds for a possible re-rating as the group expands.
It estimated Atalaya trades on roughly 4.5 times forecast earnings before interest, tax, depreciation and amortisation for this year, falling to 3 times in 2027, well below rivals.
The bank added that Atalaya could benefit longer term from further consolidation across the Iberian Pyrite Belt.
