BofA Global Research has downgraded Anglo American to “neutral,” citing concerns over valuation, execution timelines, and unresolved asset sales. Despite raising the price objective to 3,600 GBp, from 3,500 GBp, the brokerage sees limited upside. The move reflects a view that the stock has already been rerated, leaving less room for near-term outperformance.

The bank's analysis suggests Anglo American's copper assets already command elevated multiples. On a standalone basis, the company exhibits relatively low free cash flow yield and high EV/EBITDA multiples compared to peers. BofA projects a negative 1% free cash flow yield in 2025, improving to 1.6% in 2026. This makes the shares less attractive.

Analysts also point to timing issues, particularly with the merger of equals with Teck Resources, which is slated for completion in late 2026 or early 2027. Furthermore, the failed sale of coking coal assets and uncertainty around De Beers' valuation add to the challenges. These factors contribute to a more cautious outlook, although earnings estimates were revised upwards.