Morgan Stanley downgrades Ivanhoe to Equal Weight, sees limited upside

Morgan Stanley downgraded Ivanhoe Mines (IVPAF) to Equal Weight from Overweight with a price target of $15.20, down from $16.20. The firm sees more value in aluminum than copper, and with less crowded positioning, it prefers Alcoa (AA) to most copper equities. Despite the tightening copper market and higher copper price forecasts in the near-term, the firm sees limited upside to its new price target and lowered its production forecasts beyond 2027 to be more in-line with the company’s updated medium-term target. The company’s mine plan update, scheduled for 1Q26, may ultimately result in negative revisions to consensus production estimates for Kamoa-Kakula beyond the current 2026/2027 guidance period, the analyst tells investors in a research note.