Citi Sticks with £44 Antofagasta Target Despite Lowered Copper Forecast
Citi has maintained its 'Buy' rating and £44 price target for Antofagasta PLC (LSE:ANTO), a London-listed copper producer, despite lowering its forecast for the company's 2026 production.
The bank expects Antofagasta to produce 634,000 tonnes of copper this year, which is at the lower end of the company's revised guidance of 625,000 to 655,000 tonnes.
Citi notes that the disruption caused by weather conditions at Los Pelambres has led to a small pullback in Antofagasta's share price following its results. However, the bank believes that cash flows will improve through 2026 and 2027, helping to offset the near-term production weakness.
The longer-term outlook for Antofagasta is stronger, with Citi forecasting a 27% increase in copper production by 2029 as the Centinela expansion begins to ramp up next year. This expansion, along with other projects, is expected to boost group copper production by around 30%.