JP Morgan upgrades its recommendation on the mining and metals sector to overweight from previous underweight. This is on improved fundamentals and expectations of rising metal prices. This is stated in an analysis that Investing has taken note of.

More economic stimulus in China and said expectations of price increases make the investment bank see a v-shaped recovery at the end of Q1.

Since the beginning of 2024, mining stocks have lagged metal prices by around 20 percent, which JP Morgan sees as an opportunity for appreciation and believes there is still a lot of capital on the sidelines that can be invested in the sector.

The investment bank highlights companies with exposure to copper, aluminum and gold as particularly attractive. Among European companies, Rio Tinto, Antofagasta, Norsk Hydro, Fresnillo and SSAB are recommended.

According to JP Morgan, the consensus may be upgraded by 10-20 percent for mining companies' ebitda, at current share prices.

Furthermore, they expect copper prices to rise 15% to $11,500 per ton by Q2 2026.

Despite uncertainty in trade policies such as US tariffs on steel, aluminum and copper, policy clarity is expected to act as a catalyst to increase investor interest in the sector.