BofA Bets On Copper And Uranium As Higher Rates Put Gold Under Pressure
Bank of America analysts favor copper and uranium producers due to supply constraints and demand growth, while higher US interest rates may pressure gold. They downgraded Kinross Gold and Alamos Gold, raised Freeport-McMoRan's price target to $87, and maintained a 'Buy' rating on Cameco with a $133 target. Copper price forecasts were increased, with 2026 average seen at $13,278 a ton and 2027 at $15,250.
How this was made
The 30-second read
Why it matters
The note provides fresh analyst ratings and price targets, creating actionable signals for miners in both precious and base metals.
Market read
The downgrade of gold miners and upgraded targets for copper and uranium producers could shift capital flows within the mining sector.
What to watch
Potential supply constraints in copper and uranium may outweigh short‑term rating changes.
Background
Bank of America metals analyst Lawson Winder released a new note favoring copper and uranium while downgrading select gold miners.
Ticker impact
BofA downgraded Kinross Gold to Underperform, indicating a negative outlook for the miner.
likely pressure as investors price in weaker earnings expectations.
Analyst downgrade with a lower target often leads to immediate price weakness.
BofA cut Alamos Gold to Neutral, removing its prior bullish stance.
moderate downside as the neutral view reduces bullish bias.
Rating downgrade signals concerns; market typically reacts with price pullback.
Freeport-McMoRan remains BofA's top copper pick with its price target raised to $87 from $80.
upward pressure as investors adjust expectations upward.
Target increase signals stronger copper outlook, supporting price gains.
Cameco kept its Buy rating and a $133 price target, reaffirming its bullish stance.
potential upside as the buy rating and target reinforce confidence.
Maintaining a high target in a favored sector can buoy the share price.
Market effects
Highlights BofA's bullish stance on copper and uranium, potentially lifting related miners.
U.S. investors may reallocate between gold and base‑metal exposures.
Signals broader commodity rotation from precious metals to industrial metals.
Counterpoint
Gold miners could benefit if higher rates depress gold more than expected, offsetting downgrade impact.
Key entities
- analystLawson Winder
BofA metals and mining analyst authoring the note.
- institutionBank of America
Issuer of the research note.
