Shares in German copper smelter Aurubis are indicated to rise 2 percent to the top of Germany’s mid-cap MDAX index, according to pre-market data, as traders cite a note from Societe Generale which raises its recommendation on the stock to “buy” from “hold”, saying the stock’s recent decline is excessive.
“Aurubis stock has sold off about 10 percent over the last week amid a broad-based selloff of copper miners. We think this setback is unwarranted as Aurubis has less sensitivity to copper prices compared with copper miners such as Boliden and Antofagasta,” Societe Generale analysts say in a note.
Shares in Aurubis have lost about 18 percent of their value so far this year, underperforming a 5.8 percent decline in Boliden’s stock and a 3.6 percent gain by Antofagasta.
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