Analysts boosted the target price to 6,000p from 5,100p, adding they expect iron ore prices to normalise through the second half of 2021 and 2022, although near-term fundamentals remain very tight.
Meanwhile, the recovery in coking coal prices would be ex-China led through the first half.
The German bank also upgraded the target prices of Anglo American PLC (LON:AAL) to 3,000p from 2,600p, of Antofagasta PLC (LON:ANTO) to 1,100p from 940p, of BHP (LON:BHP) to 2,050p from 1,700p and of Glencore PLC (LON:GLEN) to 320p from 250p.
The higher estimates reflect the broad-based risk rally in the fourth quarter and generally positive fundamentals for the sector, although the copper market is expected to remain in a sustained deficit over the medium term and reach a peak price of US$8,200 per tonne in the second quarter of 2021.
“Sustained demand strength in China, a post vaccine activity bounce in the West together with rising expectations for major (green) fiscal stimulus should remain positive underpins to the cycle in 2021,” analysts commented.
Rio Tinto and Antofagasta shed 1% to 6,067p and 1,533.5p respectively, Anglo American and BHP remained flat while Glencore added 1% to 279.8p on Thursday late morning.