New analyst ratings for FTSE 100 mining stocks

Miners have done well recently, and one team of analysts remains bullish on the sector. Is the genie out of the bottle for a lot of commodity prices?

8th October 2025 13:47

by Graeme Evans from interactive investor

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A bullish report on the metals and mining sector today upgraded Anglo American (LSE:AAL) and flagged the gold miners with catalysts other than the record bullion price.

Amid expectations that gold and silver prices will stay higher for longer, Berenberg said it was Buy-rated on Endeavour Mining (LSE:EDV), Fresnillo (LSE:FRES) and the AIM-listed Pan African Resources (LSE:PAF).

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It also favours Antofagasta (LSE:ANTO) for large-cap copper exposure and continues to think that uranium prices will move higher, leading to a Buy stance for Yellow Cake Ordinary Shares (LSE:YCA).

The City bank also takes a more optimistic position on iron ore, believing that Chinese steel production could surprise to the upside.

It remains Hold rated on Rio Tinto Ordinary Shares (LSE:RIO) but has upgraded Anglo American in the wake of its “transformational and value-creative” M&A deal with Canada’s Teck Resources.

However, the bank today removed its Buy position on Glencore (LSE:GLEN) as it thinks the miner needs to show operational delivery before the market can afford it a re-rating.

The report was released on the day that the price of gold traded above $4,000 for the first time, having risen by 52% this year in its strongest performance since 1979.

The advance by the non-yielding asset has been fuelled by investor confidence in the US Federal Reserve’s rate-cutting cycle, a weaker dollar and uncertainty caused by the US government shutdown.

UBS now expects bullion to reach $4,200 an ounce over the coming months. It added: “While volatility could increase in the near term given the scale and speed of this year’s rally, we see both fundamental and momentum-based reasons for gold to rise further.”

Berneberg’s view is that gold prices will be flat to higher in 2026 and that this should drive major mark-to-market upside.

It added: “Gold is a great place to be, but equities need more than just mark-to-market upside to re-rate more. While we are bullish on the gold price, we think that stocks need to have other catalysts other than just a stronger gold price to re-rate.”

The bank’s preference is Endeavour, which it says has lagged Fresnillo on a relative basis but offers clear volume growth through organic and new production. It also notes low costs and major free cash flow generation and shareholder return upside.

Berenberg believes Mexico’s Fresnillo is moving towards its final leg of the current cycle upside but that it retains a Buy stance for the next upgrade cycle and special dividend in early 2026.

The bank’s price target on Fresnillo is 2,600p compared with today’s level of 2,320p, while Endeavour is backed to move from 3,222p to 4,300p.

Among small and mid-cap gold stocks, the bank highlights Pan African Resources for its shareholder returns as well as the shares of Africa-focused Resolute Mining Ltd (LSE:RSG). The price targets are 112p and 65p respectively.

The bank continues to think that investors need copper exposure amid a fairly resilient demand picture and following supply disruption at three major mines. It lifted its copper price target for next year by 12% to $10,875 a tonne.

Berenberg believes that Antofagasta shares still have upside, noting expectations for sector-leading 30% volume growth up until 2028 and attractive gold exposure at two of its mines. It has a price target of 2,900p, up from today’s 2,788p.

Among the diversified miners, the bank thinks the Anglo American/Teck Resources merger will be a success, both in creating value from synergies and through combining two businesses at a good valuation.

It said: “We move our recommendation on Anglo American to Buy, from Hold, and think that a constructive copper and iron ore outlook will benefit this business alongside deal tailwinds.”

Anglo American’s price target now stands at 3,000p, up from 2,300p previously.

Berenberg points out that Glencore faces headwinds from an operational perspective and will need to have a stellar fourth quarter in order to meet guidance.

It added: “Part of the Glencore equity story has centred on supplemental returns, but with net debt over the $10 billion cap, excess returns are unlikely in 2026. Glencore is cheap, but we cannot see a clear reason to buy it in the short term so we move to Hold.”

Despite the current market conditions, Berenberg noted some stocks such as Ecora Resources (LSE:ECOR), Rainbow Rare Earths Ltd (LSE:RBW) and Tharisa (LSE:THS) have been overlooked by the market.

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