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Scotiabank Analyst Sees Value in Copper Miners Following Recent Market Sell-off
Non-Energy Minerals · Other Metals/Minerals · globe_inside_market · 2026-11-09
Scotiabank analyst Orest Wowkodaw suggests that copper mining stocks are currently undervalued, trading at significant discounts despite robust metal prices.
What Happened
Copper Sector Valuation: Scotiabank analyst Orest Wowkodaw reports that copper miners are trading at an average implied discount of 2 percent to spot copper prices. This valuation gap persists despite recent market volatility, with many miners now trading below their three-year average price-to-NAV multiples.
Market Performance and Outlook: While the AI and data center investment narrative faces increased scrutiny, fundamental support for copper remains strong due to guidance cuts at major projects like Kamoa-Kakula. Analysts highlight First Quantum Minerals and Lundin Mining as potentially undervalued opportunities compared to higher-priced peers like Antofagasta and Freeport-McMoRan.
Capital Spending Skepticism: BMO economist Robert Kavcic notes that market skepticism regarding the sustainability of massive capital expenditures is rising. This shift in sentiment, coupled with concerns over the actual return on investment for AI, suggests a potential cooling of growth in sectors previously driven by heavy software and hardware spending.
Earnings and Profitability Trends: Wells Fargo strategist Ohsung Kwon observes that while third-quarter earnings beats remain present, the pace of growth is decelerating compared to earlier in the year. Rising cost pressures and increased mentions of inflation suggest that companies are facing tighter margins, leading analysts to favor quality stocks over high-beta alternatives.