Deutsche Bank raises targets on UK miners as copper squeeze looms Proactive uses images sourced from Shutterstock

Deutsche Bank has raised its targets on several UK-listed miners as stronger copper fundamentals point to a potential supply squeeze over the coming quarters.

Anglo American PLC (LSE:AAL), the diversified mining group, remains rated 'buy', with the target price increased to 4,700p from 4,500p, making it one of the bank’s preferred stocks in the sector.

Glencore PLC (LSE:GLEN), the mining and commodities group, also remains a 'buy', with its target lifted to 680p from 630p as Deutsche Bank expects continued strength in copper-related earnings.

Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF), the diversified miner, has a 'hold' rating, with the target raised to 7,600p from 7,400p, while BHP, the global mining group, remains 'hold' with its target increased to 2,900p from 2,700p.

Antofagasta PLC (LSE:ANTO), the Chile-focused copper producer listed in London, remains a 'sell' despite a target increase from 3,400p to 3,600p.

The changes form part of a broad sector review led by analyst Liam Fitzpatrick, who said miners had performed strongly during the third quarter and so far this year, driven mainly by a surging copper price.

Deutsche Bank expects copper to reach $14,500 a tonne in 2027, up from a previous forecast of $12,500, while its aluminium forecast rises to $3,050 from $3,000 and its iron ore forecast falls to $98 from $100.

The bank said rising bond yields and a stronger dollar had weighed on mining stocks recently, but it still sees copper fundamentals as strong enough to create an acute squeeze in the market.

Earnings risk for major diversified miners has turned slightly negative because of weaker iron ore prices, while copper-focused companies remain firmly in upgrade territory.

Deutsche Bank’s spot 2027 earnings before interest, tax, depreciation and amortisation estimates for copper miners are around 20% above consensus, highlighting the strength of its sector outlook.

The bank’s other top picks are Teck Resources Ltd (TSX:TECK.B), Freeport-McMoRan Inc (NYSE:FCX, XETRA:FPMB), First Quantum Minerals (TSX:FM) and Hongqiao alongside Anglo American and Glencore.