** J.P. Morgan discourages sticking to the status quo in its 2026 outlook for EMEA mining and steel, as it remains bullish overall on the sector while a strategic paradigm shift in critical minerals is underway
** "2026 will see global miners embrace proactive strategic change to reposition for future opportunities in copper, gold, lithium and new frontiers," the broker says, highlighting the U.S. and Argentina as new frontiers
** Antofagasta ANTO.L remains JPM's top pick for EMEA metals and mining, highlighting sector-topping growth and return on capital employed (ROCE) in copper
** The broker also sees Rio Tinto RIO.L as its conviction large-cap play, with an abundance of value to unlock in 2026 under its new CEO
** On the European steel sector, JPM says it has high conviction for earnings recovery and higher EU steel share prices in 2026, reiterating "overweight" ratings for Voestalpine VOES.VI, SSAB SSABa.ST and ArcelorMittal MT.LU
** The broker downgrades Salzgitter SZGG.DE to "underweight" from "equalweight", citing a share overhang after media reports of key shareholder GP Günter Papenburg planning to divest its stake in the German steel group
** The broker is bullish on gold, with Fresnillo FRES.L as its top pick in the UK and EU and the London-listed shares of Anglogold AU.N as a top pick for global investors
COMPANY | RATING | OLD RATING | PT | OLD PT |
Salzgitter SZGG.DE | Underweight | Neutral | EUR 27.90 | EUR 28.50 |
Antofagasta ANTO.L | Overweight | No change | GBP 35 | GBP 34 |
Rio Tinto RIO.L | Overweight | No change | GBP 69.50 | GBP 61 |
Fresnillo FRES.L | Overweight | No change | GBP 43 | No change |
AngloGold AU.N | Overweight | No change | $131 | $128 |
ArcelorMittal MT.LU | Overweight | No change | EUR 45 | EUR 42 |
Voestalpine VOES.VI | Overweight | No change | EUR 43.40 | EUR 43.70 |
SSAB SSABa.ST | Overweight | No change | SEK 78 | SEK 73 |
(Reporting by Bernadette Hogg)
((bernadette.hogg@thomsonreuters.com))
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