Is this ASX copper stock still worth buying after a 94% surge?

After a huge year, Sandfire shares are back in focus. Is this ASX copper stock still worth buying today?

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The Sandfire Resources Ltd (ASX: SFR) share price has had a huge year.

At the time of writing, Sandfire shares are trading at $18.05, up 0.73% today.

Following a record run, the key question is whether Sandfire still offers value at current prices.

Let's take a closer look.

Why Sandfire shares have surged

Sandfire is one of the ASX's pure copper producers, and that has worked strongly in its favour this year.

Copper prices have climbed sharply over the past 12 months, supported by tight global supply and strong demand from electrification, renewable energy, data centres, and infrastructure. Supply has struggled to keep pace with rising demand, creating a tighter market.

That backdrop has pushed copper prices close to record levels and lifted sentiment across the sector.

Higher copper prices have flowed through to stronger earnings and cash flow, particularly from Sandfire's MATSA operations in Spain and Motheo in Botswana.

The company has also delivered steady operational updates, helping rebuild investor confidence after a more challenging period in recent years.

Laying the groundwork

Late in December, Sandfire also announced progress at the Kalkaroo copper-gold project in South Australia, alongside partner Havilah Resources Ltd (ASX: HAV).

Under the proposed deal, Sandfire can earn up to an 80% interest through a staged earn-in. While Kalkaroo is still some way from development, the update shows the company continuing to invest in its longer-term growth pipeline.

What are brokers saying?

Broker views on Sandfire are now more mixed, largely because the share price has already moved so far.

Macquarie recently trimmed its price target to $16.90, while UBS and Ord Minnett lifted theirs to $16.65 and $17.30, respectively. All of these targets sit below the current share price, suggesting much of the near-term upside may already be reflected.

While some brokers still like Sandfire's exposure to copper, expectations are now much higher than they were a year ago.

Is Sandfire still a buy?

Sandfire is closely tied to copper, a commodity with strong long-term demand driven by electrification and the energy transition. The business is performing well, generating cash, and continuing to invest in future growth.

The main risk now is valuation. After rising 94% in 2025, the share price is no longer cheap, and any weakness in copper prices could put pressure.

For me, Sandfire still looks like a high-quality copper stock, but after such a strong run, I'd prefer to wait for a more attractive entry point.

For now, it remains firmly on my watchlist.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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