Glencore downgraded to 'sell' by Liberum on copper, coal exposure

Glencore has been downgraded to a sell by Liberum due to its exposure to copper and coal, which the investment bank expects to undercut earnings in the miner-trader's second half.

Liberum has a target price for Glencore of £1.40 per share, it said, some way below the £1.85 level at which the company’s shares closed on Thursday. “The copper price has enjoyed a rally post Brexit, but we believe that with futures positioning extended and key macro demand indicators rolling over, that the price will soon begin to fall and average $1.80 per lb in the second half of 2016,” Liberum said. “Thermal coal supply cuts in China surprised in the first half, but domestic production should accelerate in...

Published

Andrea Hotter

July 28, 2016

18:23 GMT

New York