The mining analysts at UBS have upgraded their prices for coal and base metals, leading to a boost to its profit forecasts sector-wide of 5-25%.
At the same time, the Swiss bank became more positive on one mining major and more negative on another.
The latter first: It has gone to 'neutral' from 'buy' on BHP Billiton (LON:BLT) and has shifted its “preference” to Rio Tinto (LON:RIO).
Anglo American (LON:AAL), meanwhile, has been raised to ‘neutral’ from ‘sell’.
Its overall preference in the sector is Glencore (LON:GLEN) because of its base metal exposure, free cash flow and “dividend upside”.
UBS is slightly more bullish on the outlook for the sector, which has been dogged by a slowdown of China, formerly a growth engine for a decade-and-a-half.
“While we don't really expect this to change in the short to medium term, there is likely to be some contraction over the longer term.
“Subsequently, we have noted with interest the significant number of governments around the world that are now proposing to lift infrastructure investment.
“In our view, a step-up in global infrastructure funding through fiscal policy could see incremental demand for commodities support prices at higher levels.”