BofA crowns KGHM with double upgrade in a look to European metals & mining

Imerys SA

09/04/2024 13:37

** BoFA Securities updates ratings on European metals and
mining, marking KGHM  KGH.WA  as its top pick with a double
upgrade
    ** BoFA raises the Polish copper and silver miner to "buy"
from "underperform", taking a bullish approach on the two key
products
    ** With copper and precious metal prices rising steeply,
"positive price impact can outweigh cost pressures in the short
to medium term", it says
    ** The broker upgrades Fresnillo  FRES.L  to "neutral" from
"underperform", saying higher prices of gold and silver - key
products for the group - are likely to drive higher earnings
    ** BoFA cuts Imerys  IMTP.PA  to "underperform" from
"neutral" saying the French group is more exposed to negotiated
price/volume outcomes than competitors geared towards globally
priced commodities
    ** It does not see any jolt in short-term recovery for
Imerys, given the struggles of key industrial end-markets such
as European construction or autos
    ** Shares in KGHM are up 7.7% in afternoon trade, while
Fresnillo rises 4.3% and Imerys falls 4.2%

 (Reporting by Stéphanie Hamel)
 ((stephanie.hamel@thomsonreuters.com))