JP Morgan has expressed concerns over a lack of near-term triggers for Lundin Mining, downgrading its recommendation from overweight to neutral. The bank also placed Boliden on its negative catalyst watch list ahead of the Q2 earnings season for European base metal companies, according to Bloomberg News.
JP Morgan noted that a delayed copper demand in the first half of the year could result in weaker prices and lower demand in the second half. The bank also sees an increased risk that several companies may lower their forecasts or fail to meet expectations.
The downgrade for Lundin Mining comes as JP Morgan does not foresee any clear share price catalysts until the technical study for the Vicuna project is released in early 2026. Furthermore, the bank now considers Lundin Mining's valuation to be in line with its peers.
As for Boliden, JP Morgan pointed out that its forecasts are at risk, and the contribution to EBITDA from assets acquired from Lundin could be lower than anticipated.
JP Morgan has also cut its price target for Boliden to 280 kronor from 300 kronor, reiterating its underweight rating.
