Copper prices set to surge by 55% according to Citi. How to seize the opportunity and earn over 230%

Exploring the Copper Market: Trends and Investment Opportunities

Copper, along with gold, is experiencing a skyrocketing surge in prices that seems to have no bounds.
Increasing supply risks and fluctuating demand perspectives are fueling this upward trend.
Essential in the energy transition and the expansion of artificial intelligence, the red metal is at the center of unprecedented attention.
According to Citi experts, the price of copper could soar by up to +55% in the next 2-3 years.

Market Growth Prospects and Expert Analysis

Analysts on Wall Street paint a picture of strong optimism for investors regarding the growth prospects of the copper market.
Based on Citi’s scenario, copper could reach a price of $12,000 per ton by 2026, driven by factors such as limited concentrate availability, growing international demand, and the thrust of the energy transition.
Bank of America highlights a significant discontinuity in the historical correlations between iron and copper, emphasizing the crucial role of the red metal in new technologies and decarbonization.

Investment firm Ofi Invest Am foresees an unprecedented acceleration in copper demand for 2024, with predictions pointing to a potential leap of up to +30% in the next two years.
The involvement of artificial intelligence and decarbonization could support a price increase up to $30,000 per ton.
On the other hand, analysts at Banca Mps are more cautious, foreseeing a less bright second semester for the copper market with a price range between $8,500 and $9,000 per ton by summer.
They also predict a downward trend, possibly falling below $9,000 starting from May.

Capitalizing on Copper’s Upsurge

To leverage the current upward trend in the copper market, investors might consider various strategies.
One option is to focus on companies active in copper exploration and extraction, like Solaris Resources Inc and Freeport-McMoRan.

Solaris Resources Inc

Solaris Resources Inc, a Canadian company engaged in multi-asset exploration with a specific focus on copper and gold deposits in the Americas, presents a unique opportunity for investors with its upcoming debut on the New York Stock Exchange (NYSE).
Despite losses, the company shows signs of resilience and growth potential in the copper and gold sector.
Factset estimates Solaris’s 12-month target price at around CAD $15, with a potential upside of 230%, making it an interesting choice for investors.

Freeport-McMoRan

Another strong opportunity in the copper sector is represented by Freeport-McMoRan, one of the world’s leading mining companies.
Despite recent price increases, analysts maintain a positive outlook on the stock.
With a Buy rating from Bank of America and a target price of $59 per share (+18% from current levels), Freeport-McMoRan’s financial strength and potential for growth in the copper market make it an attractive opportunity for investors seeking exposure to the mining sector and the promising prospects in copper.
The decision to increase dividends to 15 cents per share reflects the company’s confidence in profitable future growth.

For further insights, read: Copper Market Insights