RBC Capital Markets downgraded its recommendation on shares of miner Anglo American to ‘sector perform’ from ‘outperform’ on Tuesday, slashing the price target to 3,400p from 4,100p as it pointed to rising headwinds.
The bank noted that Anglo shares are up 28% year-to-date, outperforming the sector by 14%.
“For the first time in a while we see growing headwinds that could see shares consolidate,” it said. “Still a favoured long-term exposure, with arguably the best set-up for the next 10 years, but we would look to take some profit for now.”
At 1050 BST, the shares were down 2.5% at 3,036p.
