Berenberg Upgrades Antofagasta to 'Buy' Amid Copper Price Pullback

Analysts at Berenberg have upgraded their rating on Antofagasta from 'hold' to 'buy', citing a recent pullback in copper prices as an attractive entry point. The German bank believes that part of the volatility reflected speculation over potential US tariffs on refined copper imports, but argues that such tariffs would be inflationary and therefore unlikely.

The current share price offers an attractive entry point ahead of expected volume-driven rerating over 2027-28, according to Berenberg. The bank values the shares at 2.37x NAV and 7.8x 2027 EBITDA. Antofagasta is described as a 'high-quality' copper producer with a strong growth profile.

The forecast for Antofagasta's volumes to rise 27% between 2026 and 2028, from 646,000 tonnes to 818,000 tonnes, is supported by higher grades at Los Pelambres and ramp-up at the new Centinela second concentrator. By-product growth in molybdenum and gold is also expected to help keep costs controlled and move the group further down the cost curve.

Separately, Canaccord Genuity has cut its price target on Cerillion from 2,060p to 1,760p after the software group warned that second-half trading would be weaker than expected. The Canadian bank now expects FY26 revenue growth of 2%, with lower licence sales and margins driving a 13% decline in adjusted EBIT and earnings per share.