BofA-Mitsubishi Materials Raise PO：Growth driven by copper mining and recycling-20260105

Raise PO to ¥4,150 from ¥3,200; reiterate Buy

We raise our price objective (PO) to ¥4,150 from ¥3,200, reflecting upward revision ofFX assumption (from ¥145/US$ to ¥150/US$), copper price outlook (2026E: from524¢/lb to 533¢/lb; 2027E: from 612¢/lb to 621¢/lb), and benefits from palladium andsulfuric acid prices. We also factor in higher long-term copper price (from 408¢/lb to453¢/lb) and improved valuation. We lift the applied P/E for FY3/27 to 12.0x from 10.5x,using the midpoint of the past 10-year range (6-18x). Our Buy thesis includes expansionof copper interests at Mantoverde, rising copper prices, and growth in secondarysmelting business.