Citi has raised its target price on Antofagast PLC (LSE:ANTO) to £43 and kept a Buy rating, stating the miner remains the standout listed route for investors seeking pure-play copper exposure despite a valuation that already implies a strong long-term metal price.
The bank's analysts noted that first-quarter copper output came in at only around 21% of the midpoint of Antofagasta’s full-year guidance, but it don't see that as a red flag.
Instead, Citi pointed to higher grades in the mine plan, especially at Los Pelambres and also at Centinela, as the basis for a sharper production uplift in the second half of 2026.
Citi also said Antofagasta looks better insulated than many peers from rising energy costs and the risk of acid shortages linked to conflict in the Middle East. That relative resilience, combined with what the broker sees as a steady operating track record, helps underpin confidence in the group’s near-term delivery and medium-term growth outlook.
While Citi said the shares are pricing in copper at about $7.2 a pound, roughly 20% above the spot price, it argued Antofagasta can still support a premium valuation.
The broker said expected volume growth of 25% over the next three years, among copper pure-play equities, gives scope for that premium to hold and potentially expand. Citi also increased its 2026 to 2028 EBITDA estimates by 1% to 3%.