Sell mining shares and invest in energy stocks instead — that's the message from the Swiss investment bank UBS. On the one hand, the bank believes that "unsynchronized" global growth and recessionary concerns in the U.S. make it difficult for mining companies to perform well. On the other hand, UBS expects energy stocks to continue delivering bumper cash flow this year, according to UBS. "Both sectors tend to benefit from rising global growth, but we don't expect that.
The following table shows eight buy-rated energy stocks with double-digit price targets. The table below shows six sell-rated mining stocks with significant downside to their price targets. UBS analysts have forecast that free cash flow from the mining sector will decline as bulk commodity prices retrace from their highs. Copper prices are still hovering around their highs for this decade at about $4 a pound.
time to buy mining stocks.
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Source: Reuters - 🏆 2. / 97 Read more »