RBC said it continues to see long-term value in the shares, but noted the increased risk perceptions around Peru and Chile, a possible reversal of the price momentum in platinum group metals and a potential 3rd COVID-19 wave in South Africa as some of the near-term risks.
Anglo American shares have gained 28% this year and outperformed the sector by 14% during this time.
“For the first time in a while we see growing headwinds that could see shares consolidate. Still a favoured long-term exposure, with arguably the best set-up for the next 10 years, but we would look to take some profit for now,” said RBC.
It reduced its target price to 3,400p, from 4,100p, and downgraded its recommendation to ‘Sector Perform’ from ‘Outperform’.
The shares were down 2.6% at priced at 3,033p in mid-morning trading.