NEW YORK ( TheStreet) -- A TD Securities analyst says the overall outlook for base metals is positive and China's copper demand is quite steady.
Further, he adds that economic recovery in the U.S. will add incrementally to demand. Surprisingly, China's latest industrial production data add to the positivity and ease the concerns of a looming debt scenario in Europe and the U.S.
According to a recent report by Fitch Ratings, base metals producers are likely to record higher earnings and cash flows in 2011 compared to 2010, driven by improved prices. The rating outlook for the sector is stable on the expectations of metal producers remaining disciplined and retaining their financial profile through the recovery. Furthermore, Fitch foresees the recovery to stretch into 2012.
These eight stocks have upside potential of 9% to 41%, according to a Bloomberg consensus. On average, these stocks have 66% buy ratings, 28% hold ratings and negligible sell ratings.The stocks are stacked based on upside, great to greatest.
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