Glencore blessed by a lack of iron, bullish broker eyes copper and coal value Proactive uses images sourced from Shutterstock
RBC Capital Markets has repeated an Outperform rating on Glencore PLC (LSE:GLEN), pitching a 600p price target, as the Canadian bank continues to favour the miner over more diversified peers.
The broker’s target implies around 23% upside from the current market price of around 513.8p,
Glencore’s appeal, according to RBC, is its lack of iron ore exposure, along with its coal earnings leverage and potential restructuring options, including a coal spin-out or copper project stake sales.
RBC left its 2026-28 EBITDA and EPS forecasts broadly unchanged after updating for first-half thermal coal prices. It expects H1 EBITDA of US$9.8bn and EPS of US$0.23, slightly below consensus, but sees marketing as the standout, forecasting US$2.4bn of H1 marketing EBIT versus consensus of US$2.2bn.
Production estimates include Q2 copper output of 205kt, steelmaking coal at 8.3mt, energy coal at 23.5mt and zinc at 182kt.
RBC also expects US$1.4bn of additional H1 capital returns beyond the base dividend, supported by an assumed US$1bn Bunge stock sale, split between dividend and buyback.