Monday’s analyst upgrades and downgrades

Monday’s analyst upgrades and downgrades DAVID LEEDER PUBLISHED 24 MINUTES AGO COMMENTS SHARE SAVE FOR LATER Listen to this article Learn more about audio Log in or create a free account to listen to this article. Inside the Market’s roundup of some of today’s key analyst actions Despite persistent inflation and recent interest rate hikes, analysts at National Bank Financial continue to see a “supportive” backdrop for metal prices, pointing to “strong Central Bank buying, physical demand from China and India, continued devaluation of the USD given elevated debt levels, and heightened geopolitical uncertainty.” “We continue to expect U.S. debt levels and fiscal deficits to rise, heightened geopolitical uncertainty, and a softer USD, while central bank buying remains robust,” they added. In a client report released before the bell, the analysts upgraded their price deck for all metals and foreign exchange rates to incorporate average prices thus far in the third quarter as well as revisiting their forward-looking estimates. Changes included an increase to their 2027-2028 gold price assumptions to US$4,700 per ounce from US$4,500, while their silver assumptions over the same time period remain unchanged at US$70 per ounce. “We have also updated our long-term prices, accounting for the continued inflationary pressures on costs the sector has been facing and anticipation for additional cost escalation as mining companies look to optimize mine planning under an elevated commodity price environment,” the analysts said. “We have shifted our long-term price to now begin in 2032 (previously 2031), with the increase in the cost base pushing our long-term gold price higher to US$3,400/oz (was US$3,200/oz). We have also increased our long-term silver price to US$45.00/oz (was US$42.00/oz), keeping our long-term gold/silver ratio at 76 times. Our long-term FX rates continue to be based on an evaluation of forward curves for 2028-2032.” For copper and uranium, the analysts said: “Growing COMEX stockpiles, AI data centre growth and resilient global manufacturing data has been supportive of higher copper prices year-to-date. We have adjusted near-term price assumptions to be better aligned with spot at US$6.50/lb (was US$6.00/lb). Accounting for current cost structure and higher sustained global inventory levels (owing to more protectionist critical mineral policies) had led to an increase in our long-term copper price assumption to US$4.75/lb (2032+) from…