BofA-Sumitomo Metal Mining Raise PO：Medium-to long-term copper...-20260105

Raise PO from ¥6,400 to ¥7,600; reiterate Buy

We raise our earnings estimates, reflecting higher copper and gold price outlook, sulfuricacid price gains, and improved copper smelting margins, despite a downward revision tonickel price outlook. In addition, we raise our price objective (PO) to reflect higher long-term copper and gold price assumptions and resulting valuation uplift. We now base ourPO on a P/E of 14x our FY3/27 EPS estimate (previously 12x). Our Buy thesis is based onrising copper and gold prices, as well as equity volume expansion, which should driveearnings above consensus.