Anglo American PLC (LSE:AAL) has had a second upgrade in as many days, with Deutsche Bank joining the positive mood as it lifted its rating to 'buy' from 'hold'.
Analyst Liam Fitzpatrick said 2023 has been a tough year for the global metals and mining sector, and the first half of 2024 could remain challenging, as sub-trend global demand continues to weigh on prices.
“However, stagnant growth is already priced in, and we believe an eventual end to destocking (which is already advanced) and a subsequent recovery in apparent demand should see prices respond quickly, due to low inventories and inelastic supply,” he thinks.
Fitzpatrick likes iron ore heading into 2024; the consensus remains too bearish for the short and medium term and seasonal factors should support prices in the coming months, he reckons.
However, the analyst nudged his price target down to 3,000p from 3,100p.
Earlier in the week, Anglo also got a positive write-up from Liberum, while in the Financial Times today there was a detailed analysis of the company's Woodsmith polyhalite fertiliser mine in North Yorkshire, purchased from Sirius Minerals in 2020 (although there were conflicting quotes there, including that "The jury is out" on the product, which could be “mildly” but “not hugely” helpful).