BT and Glencore among City’s latest new year tips
It’s the time of year when analysts swamp investors with new ideas, recommendations and price targets. City writer Graeme Evans explains why these companies are grabbing attention.
8th January 2026 15:34
by Graeme Evans from interactive investor
The BT logo on a smartphone screen. Photo: Thomas Fuller/SOPA Images/LightRocket via Getty Images.
The return of Glencore (LSE:GLEN) shares to 500p and the resurgence of BT Group (LSE:BT.A) after a lacklustre run for the telecoms stock today featured among the City’s latest new year predictions.
Deutsche Bank’s support for Glencore formed part of a wider review of the mining sector, including an increase in its 2026 estimates for key industrial commodity prices.
- Invest with ii: Top UK Shares | Share Tips & Ideas | Open a Trading Account
The sector has enjoyed a strong run since the summer, with Chile’s Antofagasta (LSE:ANTO) among the beneficiaries after it doubled its valuation over the course of 2025.
Deutsche Bank said the shares decoupled from the copper price through the second half, reflecting operational challenges at other major producers and scarcity value in good quality, lower-risk copper companies.
It said the valuation of Antofagasta was now “very full”, prompting a move to a Sell recommendation with a price target of 2,800p.
The bank added: “Antofagasta is a good operator and we remain positive on the outlook for copper, but a key point for the market to consider is whether other large copper companies could become viable alternatives to Antofagasta within the next six-to-12 months, potentially impacting its premium valuation.”
Antofagasta faces competition from Glencore, which last month outlined plans to expand its copper production to 1.1 million tonnes (mt) by 2029 and a longer-term ambition of 1.6 mt - almost double 2025 production levels.
- Investment outlook: expert opinion, analysis and ideas
- eyeQ: silver and the catalyst for a commodity correction
- 20 value-focused top share picks for 2026
Deutsche Bank believes the 1.1 mt target is achievable, noting it would only return production to 2021-22 levels and increase the contribution to industrial earnings from about 40% to 50%.
It said: “Following sub-par production in recent years, operational performance in the quarters ahead will be key in restoring confidence, but there is attractive upside if the market starts to believe in the company’s copper growth recovery.”
By the second half of the year, Deutsche Bank believes there should be enough visibility on whether the first production step into 2027 is on track.
The strong start to the year for commodity prices and mining shares has been driven by a combination of factors including supply disruptions, the threat of US tariffs and the artificial intelligence (AI) theme.
It believes the structural forces supporting higher metal prices, particularly copper, are here to stay. Key areas of focus for industrial metals will be China’s policy update in March, US trade policies and the broader global growth/risk outlook.
As well as increasing its price estimates for copper, aluminium and iron ore this year, it has lifted its forecast for long-term real prices by up to 5%.
The bank increased its price target on Glencore shares from 400p to 500p, which compares with today’s 415p after a recovery from 230p in early April. The shares last traded above the 500p threshold in early 2023.
BT Group shares topped 220p in July but have since fallen back to 180p, reflecting the prospect of another 900,000 of Openreach line losses this year due to competition from alt-network providers and a weaker overall broadband and new homes market.
Berenberg expects a further 1.7 million more line losses over the next three and a half years, which would reduce Openreach’s current market share of 67% to 58% by 2029.
- 21 top growth stocks for 2026
- My SIPP and ISA investing goals for 2026
- Christmas trading updates: Tesco and M&S unwrap results
However, the bank points out that the market share loss has been offset by solid Openreach average revenues per user and strong savings from BT’s ongoing fibre roll-out. It also highlights the financial pressures facing the alt-nets.
Its calculations suggest that average penetration of 17% must at least double for the major alts to break even after current interest payments on nearly £14 billion of net debt.
Berenberg, which increased its price target on BT shares from 240p to 250p, believes that May’s annual results can act as a catalyst.
It said: “The results should allow management to reiterate its guidance on cash flow as the fibre build-out ends. Longer-term guidance puts shares on a cash yield of 17% - as targets are met we expect the shares to close the valuation discount and reflect the potential for a rise in the dividend.”
Lee Wild, ii's head of editorial, owns BT shares.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.