Bank of America Taps Cameco, Freeport-McMoRan, Pan American Silver as Top Mining Picks Amid Commodity Downgrades

Bank of America Global Research has named Cameco, Freeport-McMoRan, and Pan American Silver as its top stock picks in the North American metals and mining sector, highlighting specific opportunities despite a broad reduction in its near-term commodity price forecasts.

Broader Forecasts Trimmed

The selections come as BofA's commodities team lowered its outlook, particularly for precious and base metals, citing expectations for challenging market conditions through the autumn. In a note to clients, analyst Lawson Winder detailed the firm's revised stance, which included cutting 30 price objectives and lowering 2026 earnings estimates for 28 of the 30 companies under its coverage.

Despite the widespread downgrades, the firm anticipates a potential recovery after the summer. BofA analysts stated they maintain the highest conviction for upside in uranium, nickel, platinum, and silver, while seeing potential downside for U.S. hot-rolled coil steel prices.

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Top Sector Picks Emerge

Amid the challenging macro environment, BofA emphasized that individual stock selection is becoming more critical than broad market factors. The firm's top three picks are backed by company-specific catalysts and significant potential upside to their price objectives.

• Cameco (CCJ): BofA's top uranium pick is supported by a constructive view on the nuclear fuel, with spot prices still well below the firm's 2026 average forecast. The bank cited Cameco's leverage to higher prices, strong balance sheet, and its 49% stake in Westinghouse Electric, projecting a potential upside of approximately 48% to its price objective.
• Freeport-McMoRan (FCX): Named the top base-metals pick, BofA noted Freeport's visible growth and an operating turnaround that is not fully reflected in its current valuation. The firm sees approximately 35% potential upside to its price target, highlighting the company's leverage to copper.
• Pan American Silver (PAAS): Added as a top precious metals pick, BofA sees better relative upside in silver and platinum compared to gold in 2026. The firm highlighted Pan American's underpriced silver growth, potential for rising capital returns, and dormant-asset upside, forecasting a 56% potential upside to its price objective.