Update shared on 18 Nov 2025
Fair value Increased 4.25%Antofagasta's analyst price target has been revised downward from £24.79 to £25.84 per share. This change reflects a more cautious outlook from analysts amid recent reductions in growth and profitability expectations.
Analyst Commentary
Recent Street Research reveals a mixed outlook on Antofagasta as analysts adjust their price targets and ratings. Several major firms have revised expectations to reflect updated views on valuation and future performance.
Bullish Takeaways
- Bullish analysts have recently raised price targets, citing improved prospects for growth and expansion in the company's operations.
- Some experts view Antofagasta's current share price as supported by strong fundamentals, with continued demand for copper serving as a positive driver.
- Positive momentum was highlighted by sizable increases in price targets. These increases reflect greater confidence in long-term earnings potential and cash flow generation.
Bearish Takeaways
- Bearish analysts are lowering price targets due to concerns about overvaluation and reduced profitability expectations in the near term.
- A few have downgraded their ratings, emphasizing slower projected growth and the company's sensitivity to shifts in commodity prices.
- Some are cautious about Antofagasta's ability to deliver upside. They note that recent share performance has outpaced the underlying financials.
- Skepticism persists around the company's ability to sustain its current valuation without further operational improvements or sector tailwinds.
What's in the News
- Reported Q3 2025 copper production of 161.8 kt, gold production of 53.9 koz, and molybdenum production of 3.9 kt. For the year to date, copper production reached 476.6 kt, gold 145.0 koz, and molybdenum 11.4 kt (Key Developments).
- Issued new production guidance for fiscal year 2026, forecasting copper output between 650,000 and 700,000 tonnes. Incremental gains are expected at Los Pelambres (Key Developments).
- Confirmed that fiscal year 2025 copper production is now expected at the lower end of the guidance range, targeting 660,000 to 700,000 tonnes (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from £24.79 to £25.84 per share, indicating a modest upward revision in fair value estimates.
- Discount Rate increased from 8.13% to 8.73%, reflecting higher perceived risk or required return by analysts.
- Revenue Growth expectations have fallen from 9.75% to 8.11%, showing more conservative projections for top-line expansion.
- Net Profit Margin forecast has decreased from 16.99% to 16.27%, suggesting a slightly less optimistic view on profitability.
- Future P/E (Price-to-Earnings ratio) has risen from 24.20x to 28.11x, signaling a higher valuation multiple applied to anticipated future earnings.
Disclaimer
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