Broker snap: Soaring copper prices to lift miners
Higher copper prices prompted Lehman Brothers to upgrade price targets across the mining sector this morning.
The broker raises its copper price estimates for 2008 to $3.90 a pound from $3.00 previously, and consequently lifts its price targets on Xstrata, BHP Billiton and Rio Tinto respectively to 6,000p from 4,300p, 2,600p from 2,100p and 7,900p from 7,000p.
It maintains its 'overweight' ratings on the three miners.
Lehman also raises its price target on Anglo American to 4,500p from 3,900p and keeps its 'equal-weight' stance on the miner.
(Article continues below)Advertisement
It also raises its price target on Vedanta to 2,300p from 2,150p, but keeps its 'underweight' rating on the India-focused company.
Lehman said it expects supply growth of copper to fall short of expectations, but demand to increase.
It also upgraded its copper price forecasts for 2009 and 2010, to $4.50 from $2.75 a pound and to $4.00 from $2.00 respectively.
