Morgan Stanley downgrades Antofagasta to 'underweight'
By Michele Maatouk
Date: Tuesday 03 Feb 2026
(Sharecast News) - Morgan Stanley downgraded Chilean copper miner Antofagasta on Tuesday as it turned "more cautious on the pure plays" against a backdrop of record valuations and softening copper micro drivers.
In a broader note on metals and mining, the bank cut Antofagasta to 'underweight' from 'equalweight' and reduced the price target to 3,050p from 3,070p.
Morgan Stanley said it was downgrading Antofagasta as the valuation premium has reached historical highs, skewing its risk/reward unfavourably.
It said that while a rising tide lifts all boats, the "buy-over-build narrative" is more supportive for copper plays with superior growth optionality vis-à-vis those with fuller valuations and thinner project pipelines, such as Antofagasta.
"In addition, the Chilean miner has been a key beneficiary of investor inflows following major industry-wide operational setbacks," it said. "Over the next 12-18 months, we see scope for rotation away from ANTO as peers derisk and copper-focused supermajors emerge."
In the same note, it upgraded KGHM Polska Miedz SA (KGHM) to a relative 'overweight' from 'top pick' as it said the surprise CEO dismissal and resulting questions around strategic direction/capital allocation are counterbalanced by a deep valuation discount.
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