Broker snap: HSBC upgrades Antofagasta, lifts copper prices

17th Oct 2013 14:02

HSBC has raised its recommendation for Chile-based copper mining group Antofagasta from 'neutral' to 'overweight' as it lifted its target price for the commodity.The bank reportedly raised its 2014 forecast for copper from $7,250 to $7,750 a metric tonne, saying that supply concerns have been "overdone".Copper prices were at their highest level in two weeks on Thursday, helped by the bill signed the night before to increase the US debt ceiling to prevent a debt default.Copper for three-month delivery was 0.6% higher at $7,300 a metric tonne on the London Metal Exchange, its highest market since October 3rd.The target price lifted its target price for Antofagasta from 900p to 990p and also raised targets for Anglo American ('overweight') and Lonmin ('overweight'). Targets for Aquarius Platinum ('overweight'), Rio Tinto ('overweight') and Vedanta ('neutral) however were trimmed slightly.HSBC has an 'overweight' position on the platinum sector, on global diversified names and stocks exposed to copper.BC