Glencore PLC received the backing of the research team from Barclays today with analysts painting a scenario where shares in the company could double from current levels.
Barclays has set a 700p price target and reiterated its outperform rating on the diversified natural resource company which reported record interim profits in August.
A tight thermal coal market and efforts to secure alternative energy units should underpin higher-for-longer coal prices and the investment case for the company, Barclays said.
The broker said it estimates Glencore is pricing in a coal price of $53-69/t and said its upside coal price scenario could see the shares double from current levels.
The company remained its top pick in the sector, Barclays said.
In August, Glencore said underlying earnings more than doubled to $18.9bn in the first half of the year, basic earnings per share increased ninefold to $0.92 and turnover rose 43% year over year to $134bn.
The group also unveiled a $3bn buyback programme, saying it may continue until the 2022 full year results are announced in February 2023.