Barclays starts metals and mining sector with three top picks

Barclays analyst Richard Garchitorena rolled out coverage on the metals and mining sector. Investments in “transformative” technologies along with increased trade barriers are driving renewed growth for the group, the analyst tells investors in a research note. Barclays sees copper, rare earths, and uranium as key benefices of this backdrop. The firm’s preferred stock ideas are Freeport-McMoRan (FCX), Steel Dynamics (STLD), and MP Materials (MP). It expects cooper demand to outpace supply through the end of the decade and sees steel prices continuing to move higher in 2026. Barclays is positive on gold prices and gold equities. It also expects “significant demand growth” for rare earth magnets. Joining Freeport, Steel Dynamics and MP with Overweight ratings are Agnico Eagle (AEM), Hudbay Minerals (HBM), and Nucor (NUE). Barclays put Underweight ratings on Cleveland-Cliffs (CLF) and Southern Copper (SCCO). Its Equal Weight rated names are Barrick Mining (B), Cameco (CCJ), Commercial Metals (CMC), and Lundin Mining (LUNMF).