Analysts at UBS have provided an update on their predictions for a number of ASX 200 mining shares.
These include BHP Group Ltd (ASX: BHP), Fortescue Metals Group Ltd (ASX: FMG), Northern Star Resources Ltd (ASX: NST), IGO Ltd (ASX: IGO), Coronado Global Resources Inc (ASX: CRN), Gold Road Resources Ltd (ASX: GOR), and Pilbara Minerals Ltd (ASX: PLS)
Let's take a look at the outlook for these ASX 200 mining shares.
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What's ahead?
ASX 200 mining shares BHP, Rio Tinto, and Fortescue now rate as sells by UBS analysts, The Australian reported.
The analysts, quoted by the publication, said:
Most commodities remain elevated versus cost and incentive prices, but physical markets are still balanced or tight.
UBS rates Coronado and Gold Road as buys, while it has cut Northern Star Resources to a sell. Analysts have placed a $2 price target on Coronado, implying a nearly 25% upside based on its current share price.
Meanwhile, data out of China shows the country's economy lifted 4.5% in the first quarter, the highest rate of growth in a year, CNBC reported. China is the largest importer of iron ore in the world.
However, UBS is concerned about iron ore prices but believes gold, coal, and lithium are more likely to remain elevated in the medium to long term. Analysts said:
In our opinion, iron ore is structurally challenged while gold, lithium and high-quality coal will be higher for longer; base metals have attractive long-term fundamentals and leverage to China reopening in 2H23.
Pilbara Minerals has also been upgraded to a buy, while IGO also has a buy rating with UBS. The broker tips lithium demand to slip 5-15% in the short term but the lithium price to rise in the long term by 20%.
Morgans has also recently placed an add rating on Pilbara Minerals with a $5.30 price target, as my Foolish colleague James reported today. Further, Goldman Sachs has recently put a buy rating on IGO shares.
ASX 200 mining share price snapshot
The BHP share price has slipped 0.48% in a year, while Fortescue shares have risen 3.93% and Rio Tinto shares have edged 0.93% higher.
The Pilbara Minerals share price has soared 35% in a year, while IGO shares have dropped 0.64%.
Northern Star Resources shares have gained 22% in a year, while Gold Road Resources shares have climbed 5%.
Finally, Coronado Global Resources shares have lost 31% in the past year.
