Antofagasta’s analyst price target has increased by approximately £0.98. Analysts point to strengthened profit margins and higher expected revenue growth, despite concerns over valuation.
Analyst Commentary
Recent analyst updates paint a mixed picture for Antofagasta, with both bullish and bearish takeaways emerging around the company’s valuation and growth trajectory.
Bullish Takeaways- Bullish analysts have raised their price targets for Antofagasta. This reflects expectations of further revenue growth and stronger profit margins.
- Confidence in the company’s operational execution amid sector-wide challenges underpins higher target estimates.
- Some analysts continue to maintain buy ratings. They highlight Antofagasta’s potential to outperform due to favorable copper market dynamics.
- The ongoing upward revisions of price targets suggest that earnings potential and cost efficiencies remain robust.
- Bearish analysts caution that Antofagasta’s valuation is overextended, as recent share price appreciation has outpaced justified fundamentals.
- Several downgrades point to limited immediate upside, with the stock trading above certain analysts’ target prices.
- Concerns persist that future growth expectations may already be fully reflected in the current valuation. This could reduce headroom for outperformance.
- Some analysts recommend a more neutral or cautious stance, waiting for either a market pullback or more compelling catalysts from the company.
What's in the News
- The Board of Antofagasta plc has declared an interim dividend of 16.6 cents per ordinary share for the 2025 half year ended June 30, 2025, up from 7.9 cents per share in the prior year. Shareholders can elect to receive payment in US Dollars, Pounds Sterling, or Euro, with payment scheduled for September 30, 2025. (Company announcement)
- Corporate guidance for 2025 remains unchanged. Anticipated group copper production for the full year is in the range of 660,000 to 700,000 tonnes. (Company guidance)
- For the second quarter of 2025, Antofagasta reported copper production of 160,100 tonnes, gold production of 48,300 ounces, and molybdenum production of 4,400 tonnes. Year-to-date production totals are 314,900 tonnes of copper, 91,200 ounces of gold, and 7,400 tonnes of molybdenum. (Operating results)
Valuation Changes
- Fair Value per share has risen modestly from £20.57 to £21.55.
- Discount Rate has increased slightly, from 8.04% to 8.05%.
- Revenue Growth expectations are up marginally, shifting from 8.06% to 8.16%.
- Net Profit Margin has improved slightly, increasing from 13.21% to 13.35%.
- Future P/E ratio has risen significantly, moving from 20.56x to 28.67x.
Disclaimer
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