Why this ASX copper stock could be a better buy than Rio Tinto

Bell Potter is bullish on this stock and sees big returns ahead.

Rio Tinto Ltd (ASX: RIO) shares roared higher on Thursday, closing the day at $168.63.

This leaves the mining giant's shares close to a record high.

While this is great for shareholders, it could mean the rest of us have missed the boat on this one.

But never fear, Bell Potter has named another ASX copper stock with major upside potential.

Smiling man working on his laptop.

Image source: Getty Images

Which ASX copper stock?

The stock that Bell Potter is bullish on is Aeris Resources Ltd (ASX: AIS).

It was pleased with its half-year results release this week but concedes that it fell short of consensus estimates. The broker said:

AIS has released its 1HFY26 financial report, with key metrics in-line with our forecasts but a miss vs consensus. Key metrics included: revenue: $306m vs BPe $299m (cons. $311m); EBITDA: $116m vs BPe $114m (cons. $128m); NPAT: $48m vs BPe $53m (cons. $72m). Following an equity raise during the period and debt repayment, AIS is now debt free. At end December AIS held cash and metal receivables of $113m with nil drawn debt for net cash $113m. This was up from a net cash position of $14m at end June 2025.

Overall, the broker felt that this was a good result from the ASX copper stock. It adds:

We view this as a good result, with the financial performance reflecting the strengthening outlook for the business and demonstrating earnings leverage to rising copper and gold prices. EBITDA margins lifted to 37% from 28% vs PcP as a result of good cost control and rising copper and gold prices. Operating cash flow lifted 67%, to $97.3m from $58.3m vs PcP. Earnings lifted by 62% vs the PcP, to $48m as this performance flowed through.

We point out that new / current AIS shareholders have the benefit of historic tax losses. On our forecasts we do not expect AIS to pay cash tax until 2HFY27. AIS has maintained its FY26 guidance, implying strong production growth and steady costs to finish the year.

Big returns could be on the way

According to the note, the broker has retained its buy rating and 90 cents price target on Aeris' shares.

Based on its current share price of 53 cents, this implies potential upside of 70% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

AIS is a copper-dominant producer, with its near-term outlook highly leveraged to the copper price, increasing production at Tritton and gold production at Cracow. Tritton is a strategic regional asset and potential corporate target, in our view. With upside to our Target Price supported by low valuation multiples it remains a key pick for CY26. Our Target Price of $0.90/sh is unchanged on this update and we maintain our Buy recommendation.

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

More on Materials Shares

Businessman planning and analysing investment data.
Materials Shares

Forget PLS, this ASX lithium stock could rise 80%

Is this lithium miner about to roar higher? Here's what Bell Potter is predicting.

Read more »

Couple using their digital tablet together.
Materials Shares

Orica updates on North American supply and land sales

Orica secures key North American supply and updates on land sales, supporting future growth and shareholder value.

Read more »

Man analysing data on his laptop.
Materials Shares

Forget BHP and buy this ASX copper stock

Bell Potter thinks there could be big returns on offer from this stock.

Read more »

A brightly coloured graphic with a silver square showing the abbreviation Li and the word Lithium to represent lithium ASX shares such as Core Lithium with small coloured battery graphics surrounding
Materials Shares

Why are Core Lithium shares crashing 8% on Thursday?

A busy morning of announcements has investors taking notice.

Read more »

a man clasps his hand to his forehead as he looks down at his phone and grimaces with a pained expression on his face as he watches the Pilbara Minerals share price continue to fall
Materials Shares

PLS shares have surged 85% in a year. So why are short sellers circling?

Could the bears be getting ahead of themselves?

Read more »

Senior farmer in overalls standing beside flood area on field.
Materials Shares

Why is this ASX share crashing 8% on Wednesday?

A positive earnings outlook hasn't stopped the selling.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Materials Shares

3 reasons to buy BHP shares for 2027

I take a closer look at what could keep this mining giant growing well beyond 2027.

Read more »

Two workers working with a large copper coil in a factory.
Resources Shares

Capstone Copper shares take off on $542 million divestment news

Investors are piling into Capstone Copper shares on Tuesday.

Read more »