JPMorgan downgraded Southern Copper (SCCO) to Underweight from Neutral with a price target of $117.50, down from $119.50. Following the recent rally, the shares are trading at valuation levels that suggest limited upside even at spot copper prices, the analyst tells investors in a research note. For investors seeking exposure to metals in Latin America, JPMorgan highlights Vale as its top pick and sees Antofagasta as an interesting opportunity. The firm sees growing signs of near-term vulnerability for copper prices, saying the move higher has been driven more by technical factors and investor positioning than by fundamental strength.
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