Barclays Initiates Coverage of North American Metals and Mining Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 46 minutes ago
0mins
Source: seekingalpha
- Sector Recovery Drivers: Barclays analysts highlight that the North American metals and mining sector is experiencing a resurgence, primarily driven by significant investments in transformative technologies and the rise of resource nationalism, with copper, rare earths, and uranium as key beneficiaries.
- New Economy Growth Drivers: Unlike previous commodity investment cycles largely driven by 'old economy' infrastructure buildout, Barclays sees 'new economy' markets driving incremental growth through advancements in AI, robotics, and the electrification of the economy, with supply likely unable to keep pace with demand.
- Optimistic Copper Outlook: Barclays is constructive on copper, expecting demand to outstrip supply by the end of the decade, driven by growth in new end markets such as grids, renewables, and electric vehicles, as well as ongoing capex for AI infrastructure.
- Rare Earth Market Opportunities: In rare earths, Barclays anticipates significant demand growth from REO magnets to surpass domestic supply, with increased interest in alternative sources as the world shifts away from reliance on China, positioning MP Materials as a preferred stock in this sector.
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Analyst Views on FCX
Wall Street analysts forecast FCX stock price to fall
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 62.310
Low
46.00
Averages
58.79
High
70.00
Current: 62.310
Low
46.00
Averages
58.79
High
70.00
About FCX
Freeport-McMoRan Inc. is a metals company. The Company operates assets with reserves of copper, gold and molybdenum. Its portfolio of assets includes the Grasberg minerals district in Indonesia, which is a copper and gold deposit; and operations in the United States, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America. Its segments include Cerro Verde copper mine, Indonesia operations and United States Rod & Refining operations. It produces copper concentrate, cathode and continuous cast copper rod. Its copper ore from mines is processed by smelting and refining or by solution extraction and electrowinning (SX/EW). It produces copper cathodes at an electrolytic refinery located in El Paso, Texas. The SX/EW cathode is produced from the Morenci, Bagdad, Safford, Sierrita, Miami, Chino and Tyrone mines in the United States, and from the Cerro Verde and El Abra mines in South America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Barclays Initiates Coverage of North American Metals and Mining Sector
- Sector Recovery Drivers: Barclays analysts highlight that the North American metals and mining sector is experiencing a resurgence, primarily driven by significant investments in transformative technologies and the rise of resource nationalism, with copper, rare earths, and uranium as key beneficiaries.
- New Economy Growth Drivers: Unlike previous commodity investment cycles largely driven by 'old economy' infrastructure buildout, Barclays sees 'new economy' markets driving incremental growth through advancements in AI, robotics, and the electrification of the economy, with supply likely unable to keep pace with demand.
- Optimistic Copper Outlook: Barclays is constructive on copper, expecting demand to outstrip supply by the end of the decade, driven by growth in new end markets such as grids, renewables, and electric vehicles, as well as ongoing capex for AI infrastructure.
- Rare Earth Market Opportunities: In rare earths, Barclays anticipates significant demand growth from REO magnets to surpass domestic supply, with increased interest in alternative sources as the world shifts away from reliance on China, positioning MP Materials as a preferred stock in this sector.
See More
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- Rising Bond Yields: The 10-year T-note yield surged to a 16-month high of 4.69%, triggering risk-off sentiment that led to increased stock liquidation, further heightening market uncertainty and potentially prompting the Fed to adopt tighter monetary policies.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, and March figures were revised up to 1.7%, demonstrating resilience in the housing market that could provide some support for stocks.
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- Rising Bond Yields: The 10-year T-note yield climbed to a 16-month high of 4.69%, intensifying concerns over rising inflation that may prompt the Fed to pursue tighter monetary policy, thereby impacting stock market performance.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, demonstrating resilience in the housing market that could provide some support for stocks, despite overall market pressures.
- Oil Price Volatility: WTI crude oil prices dropped over 1% today due to geopolitical factors, with market concerns about future supply tightness intensifying, potentially affecting stock performance in related sectors, particularly airlines and mining stocks.
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- Commodity Investment Opportunities: Bank of America's strategists highlighted that commodities have performed well, with copper reaching a record high this week and oil prices remaining elevated due to the Iran conflict, recommending investors consider stock ETFs in metals and mining, such as the iShares U.S. Basic Materials ETF (IYM), which is up over 20% year to date.
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See More
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- Sector Recovery Drivers: Barclays analysts highlight that the North American metals and mining sector is experiencing a resurgence, primarily driven by significant investments in transformative technologies and the rise of resource nationalism, with copper, rare earths, and uranium as key beneficiaries.
- New Economy Growth Drivers: Unlike previous commodity investment cycles largely driven by 'old economy' infrastructure buildout, Barclays sees 'new economy' markets driving incremental growth through advancements in AI, robotics, and the electrification of the economy, with supply likely unable to keep pace with demand.
- Optimistic Copper Outlook: Barclays is constructive on copper, expecting demand to outstrip supply by the end of the decade, driven by growth in new end markets such as grids, renewables, and electric vehicles, as well as ongoing capex for AI infrastructure.
- Rare Earth Market Opportunities: In rare earths, Barclays anticipates significant demand growth from REO magnets to surpass domestic supply, with increased interest in alternative sources as the world shifts away from reliance on China, positioning MP Materials as a preferred stock in this sector.
See More
US Stocks Close Lower as Tech Rally Falters
- Market Decline: The S&P 500 and Nasdaq 100 fell by 0.67% and 0.61%, respectively, reaching 1.5-week lows, indicating concerns over a pullback in tech stocks, particularly as the AI-driven rally loses momentum, which may affect investor confidence.
- Rising Bond Yields: The 10-year T-note yield surged to a 16-month high of 4.69%, triggering risk-off sentiment that led to increased stock liquidation, further heightening market uncertainty and potentially prompting the Fed to adopt tighter monetary policies.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, and March figures were revised up to 1.7%, demonstrating resilience in the housing market that could provide some support for stocks.
- Oil Price Volatility: WTI crude prices fell nearly 1% following President Trump's comments on Iran, while the IEA reported a decline in global oil inventories of about 4 million bpd, suggesting that the market will remain undersupplied in the near term, impacting related energy stocks.
See More
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- Market Retreat: The S&P 500 index fell by 0.68% and the Nasdaq 100 by 0.95%, both hitting 1.5-week lows, indicating a weakening confidence in tech stocks that could affect investor sentiment and future capital flows.
- Rising Bond Yields: The 10-year T-note yield climbed to a 16-month high of 4.69%, intensifying concerns over rising inflation that may prompt the Fed to pursue tighter monetary policy, thereby impacting stock market performance.
- Supportive Economic Data: April pending home sales rose by 1.4% month-over-month, surpassing expectations of 1.0%, demonstrating resilience in the housing market that could provide some support for stocks, despite overall market pressures.
- Oil Price Volatility: WTI crude oil prices dropped over 1% today due to geopolitical factors, with market concerns about future supply tightness intensifying, potentially affecting stock performance in related sectors, particularly airlines and mining stocks.
See More
Microsoft Shares Rise as ServiceNow Partners with Experian
- Microsoft Shares Rise: Microsoft's stock rose nearly 4% following Bill Ackman's disclosure of accumulating shares, as he finds the company's valuation to be 'highly compelling' after its second-quarter earnings report.
- ServiceNow Partnership: ServiceNow's stock increased nearly 5% after announcing a multiyear partnership with Experian to develop autonomous AI agents, which is expected to enhance their competitive edge in the AI market.
- Ford Stock Decline: Ford's shares fell about 7% after a previous surge of over 20%, with analysts noting that recent gains were driven more by enthusiasm around battery storage ambitions than by solid fundamentals.
- Figma Earnings Beat: Figma's stock surged nearly 9% after reporting first-quarter earnings of 10 cents per share on revenues of $333 million, exceeding analyst expectations of 6 cents per share, indicating strong market demand.
See More
Semiconductor Stocks Decline, Figma and Magnum Ice Cream Surge
- Applied Materials Earnings Beat: Despite reporting fiscal second-quarter earnings of $2.86 per share and revenues of $7.91 billion, both exceeding analyst expectations, Applied Materials' stock fell about 2%, indicating market concerns about the semiconductor sector's outlook.
- Semiconductor Sector Decline: The iShares Semiconductor ETF is poised to end a six-week winning streak, with Marvell and Intel both down 4%, while ASML and Arm dropped over 3.5%, reflecting diminished investor confidence in the industry.
- Figma Stock Surge: Figma's first-quarter earnings of 10 cents per share on revenues of $333 million surpassed analyst expectations of 6 cents and $313 million, leading to a nearly 9% increase in stock price, showcasing strong market demand for its services.
- Magnum Ice Cream Acquisition Interest: Magnum Ice Cream shares jumped over 17% following reports that firms like Blackstone and CD&R are considering a bid, with potential buyers waiting for summer sales data before proceeding, indicating optimism about the company's growth prospects.
See More
Bank of America: Investment Strategies Amid Persistent Inflation
- Persistent Inflation: According to Bank of America, the consumer price index rose 0.6% in April, bringing the annual rate to 3.8%, the highest since May 2023, indicating that inflation remains far from the Federal Reserve's 2% target, necessitating a reassessment of asset allocations by investors to navigate the high inflation environment.
- Commodity Investment Opportunities: Bank of America's strategists highlighted that commodities have performed well, with copper reaching a record high this week and oil prices remaining elevated due to the Iran conflict, recommending investors consider stock ETFs in metals and mining, such as the iShares U.S. Basic Materials ETF (IYM), which is up over 20% year to date.
- Small Cap Value Investments: The bank touted U.S. small cap value stocks as one of the least expensive trades, even after returning 15% to 17% year to date, while also mentioning international small cap value, specifically the Avantis International Small Cap Value ETF (AVDV), which is up 17% in 2026.
- Nuclear Energy Investment Outlook: Bank of America's commodities team forecasts uranium prices to reach $135 by 2027, challenging historical highs, and recommends the Global X Uranium ETF (URA) as a play on this theme, which has risen 22% this year and offers a current dividend yield of nearly 4%.
See More
