Deutsche Bank reiterates 'sell' for Antofagasta on outlook for soft copper prices
Analysts at Deutsche Bank reiterated their 'sell' stance and 820.0p target price on shares of Antofagasta after attending a roundtable with its chief executive officer.
They labelled Antofagasta a "quality copper stock" and expressed a liking for management's phased and disciplined approach to project development.
However, with copper prices set to remain beneath mid-cycle levels for the foreseeable future, they believed the shares' current valuation was "difficult to justify" on both a relative and absolute basis.
On their estimates, the shares were sporting a 2020 enterprise value-to-earnings before interest, taxes, depreciation and amortisation multiple of eight times and a price-to-earnings multiple of 25.0.