The metals and mining team at Macquarie has had a good look at the global copper sector and has decided to upgrade its outlook for the copper price in the short term.
The analyst team is now expecting prices for the red metal to be 9% stronger this calendar year, an impressive 33% up on their previous estimates in 2027 and 14% up in 2028.
These forecasts have flowed through into their price targets for Australia's major ASX copper miners, with a slew of upgrades announced in a recent research note to clients.
Let's see which companies they like.
Sandfire Resources Ltd (ASX: SFR)
In term of pure play ASX copper companies, Sandfire is Macquarie's top pick, with the analyst team keen on its diversified operating base, improving balance sheet and growing pipeline.
Macquarie's analyst team said:
The key attraction is the combination of established production, low C1 cost performance and near-term free cash flow leverage to copper and by-product prices. Growth optionality is also improving on management's disciplined approach to M&A.
Macqaurie said the company's joint venture with Havilah Resources Ltd (ASX: HAV) also added a potential long-life copper-gold development option in South Australia over the medium term.
Macquarie has a price target of $21 per share on Sandfire compared to $20.86 currently.
Capstone Copper Corp (ASX: CSC)
The Macquarie team have an outperform rating on Capstone saying the company offers a more leveraged exposure through its diversified Americas portfolio.
They said:
We see the key attraction as a combination of operating scale, copper beta and self funded growth, with balance sheet capacity improving; net debt reduced to US$738m at 1QCY26. The main risks remain execution at Mantoverde and Santo Domingo sanctioning (both in the 4QCY36), and input-cost inflation, but we view the risk/reward as attractive given strong growth outlook at an attractive multiple.
Macquarie has an $18 price target on Capstone shares compared to $15.41 currently.
Looking at some other companies in less detail, Macquarie has upped its price target for Aurelia Metals Ltd (ASX: AMI) from 40 cents to 43 cents. That would constitute a 38.7% return if achieved.
For Aeris Resources Ltd (ASX: AIS) Macquarie now has a price target of 73 cents, up from 70 cents. That compares to the current price of 42 cents.
Carnaby Resources Ltd (ASX: CNB) now has a price target of 80 cents, up from 70 cents, compared to 69 cents currently.
And for FireFly Metals Ltd (ASX: FFM) the price target has increased from $2.30 to $2.50 compared to $2.04 currently.
The post Macquarie has upgraded its copper price outlook. Let's see which ASX shares they like appeared first on The Motley Fool Australia.
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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