Investing.com -- Morgan Stanley expects elevated volatility in the mining sector through 2025, particularly in the first half, citing global growth headwinds and uncertain economic policies in China and the U.S.
The brokerage downgraded Vale SA ADR (NYSE:VALE) to "equal weight," noting the iron ore miner's underperformance relative to peers despite recent positive catalysts, such as a new CEO and agreements addressing legacy issues. Iron ore supply surpluses and uncertain pricing are expected to weigh on the stock in the near term.
Morgan Stanley (NYSE:MS) upgraded Southern Copper Corporation (NYSE:SCCO) and Nexa Resources SA (NYSE:NEXA) to "equal weight," citing tighter supply forecasts for base metals like copper and zinc.
A near 12% pullback in Southern Copper's stock from its recent peak has improved its risk-reward balance, despite ongoing political concerns in Mexico.
The firm continues to favor base metal equities over iron ore stocks, pointing to supply deficits in copper, aluminum, and zinc, as well as potential catalysts such as aluminum producer Alcoa (NYSE:AA), which Morgan Stanley named its "top pick" for self-help initiatives and upside to consensus estimates.
Related Articles
Morgan Stanley sees volatility in mining sector, adjusts ratings
Producers of Netflix hit 'Love is Blind' accused of US labor law violations
Intel executives say manufacturing spinoff is possible
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。