After plummeting to around 205p in April, Glencore’s (LSE: GLEN) share price has rebounded. Currently, it’s trading at around 287p – about 40% higher than its 2025 lows.
Can the commodity stock continue to climb from here? One broker believes so. It has a price target that’s far higher than the current share price.
A lofty price target
The broker I’m talking about is Jefferies. It believes that today, Glencore shares are still undervalued.
Its price target’s 380p – about 32% above the current price. However, taking a ‘sum-of-the-parts’ valuation approach, it gets to a price target of 467p – about 63% higher.
Now, I’ll point out that broker forecasts and price targets need to be taken with a grain of salt. Often, they’re way off the mark.
This target suggests that Jefferies sees a lot of near-term potential in the stock however. Note that it currently lists the Footsie stock as a top mining pick.
My take on Glencore now
I last covered Glencore shares back on 7 April (at the height of the tariff market meltdown). At the time, the stock was near 200p and I wrote: “if one is patient, I think there’s a chance that Glencore shares could work from here.”
As for my view on the stock now, I’m less confident in the potential for share price gains now that it’s trading 40% higher than it was in April. Ultimately, a lot of the easy gains have already been made.
I do still see some potential in the long run however. That’s because Glencore generates a lot of its revenues from copper.
And the long-term fundamentals for this commodity look attractive. Looking ahead, the transition to electric vehicles (EVs), the shift to clean energy, the scale up of data centres, and the stockpiling of ammunition should all boost demand.
It’s worth noting that the International Energy Agency (IEA) believes that, within a decade, copper demand will outstrip supply. It forecasts 2035 copper demand at 28.3m tonnes versus copper supply of 21.8m tonnes.
An unpredictable stock
Share price gains are far from guaranteed though. With this stock, there are lots of things that can go wrong.
Operational setbacks are one. Note that in Q1, copper production was down 30% year on year, primarily due to lower ore mining rates, head grades, and overall recoveries at several mines.
Lower commodity prices are another factor that can hurt investors. Often, prices fall when there are concerns about global economic growth.
It’s worth pointing out here that alongside copper, Glencore also produces coal. And recently, coal prices have fallen as a result of weak demand from Asia.
Better stocks to buy?
Given the risks, I see this FTSE stock as a little speculative. It could be worth thinking about if an investor is specifically looking for a copper play. However, I think there are better – and safer – stocks to consider buying for the long term.
