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12 of top 25 mining stocks trading below analyst targets by 10% or more

A dozen mining companies were trading at least 10% below analysts' mean target prices for the stock as of Sept. 27, an S&P Global Market Intelligence analysis found.

Only five of the top 25 global mining companies by market capitalization are trading above analysts' price targets, implying a negative upside, while five companies in the top 25 boast an implied upside of more than 20%.

Zijin Mining Group Co. Ltd. shares feature an implied upside of 39.3%, the largest among global mining companies, and a reported buy strength of 100%. Buy strength is a measure determined by dividing the total number of buy and overweight recommendations from analysts by the total recommendations available. The company also had a total return of negative 2.2% over the past year.

Other companies with an upside greater than 20% are Vale SA, Freeport-McMoRan Inc., Anglo American PLC and Grupo México SAB de CV.

Despite a one-year total return of 98.1%, Anglo American Platinum Ltd. ranked near the bottom of the top 25 miners by analysts' expectations, with an implied upside to its share price of negative 8.4%. Other companies with a negative upside to analysts' price targets include Newcrest Mining Ltd., Fortescue Metals Group Ltd., Saudi Arabian Mining Co. and PJSC Polyus.

Bernstein Research analyst Paul Gait said in a September note that the mining sector is being valued at a 100-year low, and with mining stocks cheaper than ever, the current weakness in mining makes for an ideal entry point for the long-term investor.

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