Many ASX 200 mining shares have had a top run in the past year, but are they still a buy?
Analysts have just downgraded the outlook for multiple ASX miners. These include BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), Fortescue Metals Group Ltd (ASX: FMG), Core Lithium Ltd (ASX: CXO), and Newcrest Mining Ltd (ASX: NCM).
So what are brokers saying about some of these ASX 200 mining shares?
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Multiple mining shares cut
Capital market company CLSA has cut the Fortescue share price outlook to a sell with a $19 price target, the Australian Financial Review reported. Meanwhile, BHP has been cut to reduce with a $48.50 price target. And Rio Tinto has also been downgraded to reduce at a $117.50 price target.
Rio Tinto, BHP, and Fortescue are all major producers of iron ore, along with other minerals.
Fortescue shares closed on Tuesday at $22.03 each, meaning CLSA is tipping a 13.8% downside. BHP shares closed at $49.14, while Rio Tinto shares finished the day at $120.67. At those prices, CLSA analysts are forecasting BHP shares to have downside of 1.3% and Rio Tinto shares to slide 2.6%.
Meanwhile, Macquarie has slashed gold miner Newcrest to a neutral rating with a $25 price target, the AFR reported. Newcrest shares finished at $22.75 on Tuesday. This means despite the rating downgrade, Macquarie still sees nearly 10% upside for the Newcrest share price.
Lithium miner Core Lithium has also been slapped with a new "underweight" rating by JPMorgan. Core Lithium shares closed at $1.02 apiece on Tuesday.
What else?
Despite the broker downgrades, not everyone is negative on commodities. Goldman Sachs global head of commodities research Jeff Currie is very optimistic on the outlook for 2023.
In a presentation in London, Currie stated commodities have "the strongest outlook of any asset class in 2023", Bloomberg reported. Currie said:
You cannot come up with a more bullish concoction for commodities.
Lack of supply is apparent in every single market you look at, whether it is inventories at critical operating levels or production capacity exhausted.
Share price snapshot
Most of the ASX 200 mining shares hit by broker downgrades have soared ahead in the last year.
For example, BHP shares have leapt 19.59% in the past 52 weeks.
Rio Tinto shares have gained 9.67% in the past year.
Fortescue shares have climbed 6% in the past 52 weeks.
The Core Lithium share price has jumped 15.91% in the last year.
However, Newcrest shares have slid nearly 7% in the last year.
