Antofagasta, the Chilean copper miner, saw its price target nudged up slightly by a broker to 27.28 pounds from 27.06. However, the firm still believes the stock’s post-2026 slump may not be over, as copper supply builds and the AI-driven demand story loses some of its luster.
Copper has been a popular bet for AI infrastructure, given its essential role in data centers, power grids, and wiring. But AlphaValue/Baader Europe, a European research firm, argues that the near-term outlook is becoming less favorable. The International Copper Study Group’s latest report points to a growing copper surplus, while tighter financing conditions could cool big spending plans tied to AI and electrification.
The analysts kept a Sell rating on Antofagasta, even as they raised their 2026 and 2027 earnings-per-share forecasts by 6.62% and 12.4% to $1.61 and $1.53, respectively. They anticipate higher profits but also more risk around output and costs, along with less patience from the market if supply stays ahead of demand.
For investors, the 27.28-pound target comes with less valuation cushion. The forecast for earnings rose much faster than the target price, implying a lower valuation multiple. AlphaValue/Baader Europe also noted that Antofagasta’s relative-valuation premium has narrowed to about 40% from 50%. With this thinner premium, the share price could react more sharply to any disappointments tied to output and cost risks.