Berenberg has downgraded Anglo American PLC (LSE:AAL), the FTSE 100 mining group, to 'hold' from 'buy', taking what it called a breather after a strong run in the shares.
The broker said it sat below market consensus for Anglo's first-half results and expected a more neutral share price until the company's merger with Canada's Teck Resources completes.
Despite the downgrade, Berenberg remained broadly positive on the sector, repeating its call for investors to hold an above-average weighting in mining stocks.
Glencore PLC (LSE:GLEN), the blue-chip commodities trader and producer, was named the broker's top pick among the diversified miners, which produce a range of commodities rather than a single one.
Berenberg described Glencore as a bridge between two scenarios for markets, one in which the recent Middle East conflict escalates and one in which tensions ease.
The broker upgraded Central Asia Metals, which mines copper, zinc and lead, to buy from hold, calling the shares cheap and flagging the potential boost from its planned deal with Cygnus Metals.
It said the company could even become a takeover target itself.
Berenberg also upgraded Valterra Platinum to 'buy', alongside Sylvania Platinum (ASX:SLV) and Tharisa, reflecting an upbeat view on platinum group metals, a family of precious metals used in vehicle catalytic converters and emerging clean energy technologies.
Antofagasta, the Chilean copper miner listed in London, was kept at 'hold', with the broker seeing better value later in 2027 as the company's growth projects come on stream.
In uranium, Berenberg reiterated its buy rating on Yellow Cake, the investment vehicle that holds physical uranium, describing the metal as a high-conviction call.
Among gold producers, the broker said it continued to favour Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) and Wheaton Precious Metals among the larger companies, and Pan African Resources and Resolute Mining among smaller and mid-sized names.
It pointed to Cornish Metals, Ecora Royalties PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF, FRA:HGR) and Guardian Metal Resources as stocks with specific catalysts that could drive their shares higher.
Berenberg said delivery on its plans should prompt a re-rating for Metlen Energy & Metals, while Griffin Mining should benefit from a stronger second half at its Caijiaying mine in China.
The broker raised its copper price forecast to between $13,500 and $14,000 a tonne, having initially expected the metal to weaken after the Middle East conflict on concerns over demand.
Instead, it said, the risk had shifted to supply.
Berenberg lifted its forecasts for thermal and metallurgical coal, trimmed its gold estimates while maintaining a supportive view, and left iron ore little changed.
The broker said it preferred small and mid-cap miners to the largest companies, arguing that recent market volatility had opened gaps between commodity and share prices and their fair value.
