Deutsche Bank has reiterated its 'Buy' rating on Anglo American PLC with a 3,500p price target, arguing that asset disposals and copper volume recovery are on track despite near-term production adjustments.
The investment bank's view follows Anglo's fourth-quarter production report, which came in broadly as expected.
Copper output of 170,000 tonnes fell slightly short of the 180,000-tonne consensus, while iron ore beat expectations at 15.1 million tonnes versus 14.3 million tonnes forecast.
Anglo also extended its production guidance through 2028 for the first time.
Analyst Liam Fitzpatrick, in a note, details that 2026 copper production was cut from a range of 760,000-820,000 tonnes to 700,000-760,000 tonnes, a move flagged in the company's third-quarter update. The 2027 outlook was trimmed marginally by 10,000 tonnes to 750,000-810,000 tonnes.
The upside story centres on 2028, when Anglo expects copper production to expand to 790,000-850,000 tonnes "due to higher grades at Collahuasi and Los Bronces," Fitzpatrick wrote.
On the disposal front, Anglo confirmed "the formal sale process for coking coal is underway and 'progressing well'" while "the De Beers disposal process is 'continuing'."
Both transactions are key to Anglo's portfolio restructuring strategy following its rejection of BHP's takeover approach last year.