Goldman Sachs on Thursday moved Glencore PLC (LON:GLEN) from Neutral to Buy, arguing the diversified miner is positioned to benefit from firmer fundamentals across several of its core commodities even as the bank remains cautious on iron ore.
In London trading following the call, Glencore shares rose 3.5% to 507.80 pence, outpacing the broader FTSE 100 which rose about 0.7%.
Analyst view and valuation
While lowering its 12-month price target to £6.30 from £6.60, Goldman Sachs said the recent, sector-wide de-rating provides an appealing entry point and that the new target still implies meaningful upside from current levels. The bank described Glencore as offering one of the strongest combinations among diversified miners of exposure to the commodities it prefers, potential incremental earnings from its marketing operations, and an attractive valuation relative to peers.
Commodities outlook
Goldman expects copper prices to remain supported by tightening mine supply and the prospect of U.S. import tariffs. For zinc, the broker highlighted continued benefits from concentrate shortages. The bank also turned more constructive on metallurgical coal after supply disruptions in China’s Shanxi province and on expectations for seasonal restocking demand from India and China later this year.
Marketing business and potential monetisations
The brokerage sees additional upside coming from Glencore’s marketing division, citing elevated energy market volatility and physical dislocations across copper and aluminium markets. Goldman also pointed to the possible role of asset monetisations - including infrastructure assets, the company’s remaining stake in Bunge and selected mining investments - in supporting improved shareholder returns over the next 12 to 18 months.
Broader sector stance
More broadly, Goldman said it remains constructive on European metals producers with exposure to copper and aluminium. The firm reiterated Buy ratings on Norsk Hydro, Antofagasta and Lundin Mining. At the same time, it maintained a cautious view on iron ore, saying softer steel demand could push prices toward $90-$95 per tonne.
Goldman’s upgrade underscores the bank’s view that specific commodity dynamics - rather than a broad-based rebound - will be the primary drivers for differentiated returns across diversified miners in the near term. The firm’s recommendation combines commodity-specific supply-side considerations with potential corporate actions that could materially affect cash returns to shareholders.