Market Sentiment on Gold and Silver: The recent rally in gold and silver prices reflects investor skepticism about the sustainability of paper money, driven by concerns over government deficits and the potential for monetary debasement.
Performance of Precious Metals: Gold has risen nearly 60% and silver over 100% year-to-date, as both metals are viewed as hard assets that provide a hedge against inflation and currency dilution.
Copper's Role and Performance: While copper has also seen significant gains (over 56% year-to-date), it has underperformed relative to gold since 1990, primarily due to its industrial use rather than as a store of value.
Investment Strategies: Investors may consider copper mining stocks, such as Southern Copper Corp, for exposure to copper's potential appreciation, with various strategies like buy-writes or call spread risk reversals suggested for those looking to invest.
Wall Street analysts forecast SCCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCCO is 127.95 USD with a low forecast of 90.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast SCCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCCO is 127.95 USD with a low forecast of 90.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
5 Hold
5 Sell
Moderate Sell
Current: 176.410
Low
90.00
Averages
127.95
High
152.00
Current: 176.410
Low
90.00
Averages
127.95
High
152.00
JPMorgan
Neutral -> Underweight
downgrade
2026-01-23
New
Reason
JPMorgan
Price Target
AI Analysis
2026-01-23
New
downgrade
Neutral -> Underweight
Reason
JPMorgan downgraded Southern Copper to Underweight from Neutral with a price target of $117.50, down from $119.50. Following the recent rally, the shares are trading at valuation levels that suggest limited upside even at spot copper prices, the analyst tells investors in a research note. For investors seeking exposure to metals in Latin America, JPMorgan highlights Vale as its top pick and sees Antofagasta as an interesting opportunity. The firm sees growing signs of near-term vulnerability for copper prices, saying the move higher has been driven more by technical factors and investor positioning than by fundamental strength.
JPMorgan
Rodolfo Angele
Neutral -> Underweight
downgrade
2026-01-22
New
Reason
JPMorgan
Rodolfo Angele
Price Target
2026-01-22
New
downgrade
Neutral -> Underweight
Reason
JPMorgan analyst Rodolfo Angele downgraded Southern Copper to Underweight from Neutral with a $117.50 price target.
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UBS
Neutral -> Sell
downgrade
$143 -> $148
2026-01-21
New
Reason
UBS
Price Target
$143 -> $148
2026-01-21
New
downgrade
Neutral -> Sell
Reason
UBS downgraded Southern Copper to Sell from Neutral with a price target of $148, up from $143. The firm cites the recent raise in silver prices for the target boost. UBS also remains "constructive" on copper prices in 2026 and 2027 due to "constrained" supply and "robust" demand. However, it sees potential for prices to consolidate near-term after the recent "aggressive move." Southern Copper's guidance when reporting Q4 at the end of January could weigh on the stock with its production set to fall year-over-year in 2026 and Tia Maria unlikely to start up in 2027. The company's political risk in Peru is also elevated near-term ahead of the elections, adds the firm.
Wells Fargo
Equal Weight
maintain
$137 -> $144
2025-12-23
Reason
Wells Fargo
Price Target
$137 -> $144
2025-12-23
maintain
Equal Weight
Reason
Wells Fargo raised the firm's price target on Southern Copper to $144 from $137 and keeps an Equal Weight rating on the shares. The firm says supply constraints can support copper and aluminum prices, especially through Q3 2026. Wells also points out that steep power costs and copper switching especially boost aluminum.
About SCCO
Southern Copper Corporation is an integrated copper producer. The Company is engaged in the production of copper, molybdenum, silver, and zinc. The Company’s mining, smelting and refining facilities are located in Peru and Mexico and conducts exploration activities in those countries and in Argentina, Chile and Ecuador. Its segments include the Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Its Peruvian operations include the Toquepala and Cuajone mine complexes and smelting and refining plants, including a precious metals plant, industrial railroad and port facilities. Its Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Its Mexican underground mining operations include five underground mines that produce zinc, copper, lead, silver and gold, and a zinc refinery.
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.
