Deutsche Bank has raised its target for shares in Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) to 6,200p a share from 6,000p following the steep rise in the price of copper.
It pointed out the red metal reached the bank's previous year-end target of $10,000 per tonne, reflecting improving global growth "and a surge in speculative flows against a backdrop of structurally tight supply".
Deutsche said it expects this "upward trend" to continue into next year driven by electrification and the AI revolution, which rely heavily on a ready supply of copper.
It pointed out that BHP Group Ltd's (LSE:BHP, ASX:BHP) failed £39 billion bid approach for Anglo American PLC (LSE:AAL) was, at the heart, a copper play.
In a note to clients, Deutsche said: "We have refreshed our copper price forecasts and earnings estimates across our European and North American coverage."
In early afternoon trading, Rio's shares were trading sideways at 5,333p.