Diversified major – Tier 1 copper exposure with undervalued growth pipeline; initiate coverage of GLC AU with an Overweight rating

We are launching coverage of Glencore's Australian listing (GLC AU) with an Overweight rating. Our key investment views: (1) Glencore's investment proposition is based around 3 pillars: Marketing (40% of 2026E EBIT), Copper (~30%), and the remaining Industrial Activities (Mining) business which is majority coal and zinc (~30%) – the key attraction for investors in our view is a superior copper growth pipeline vs BHP/RIO that could see the copper share of EBIT grow to 50%+ by 2030 (production was 850kt last year with a target of 1.6Mt in 2035). (2) Valuation metrics look cheap, with the stock trading on a P/NPV of 0.82x (includes most copper projects) and a 2027E EV/EBITDA of 5.8x. (3) Share price catalysts are centered around establishing an extended period of strong operational performance, and delivery of the copper project pipeline. We believe Australian investors are likely to be marginal buyers of the stock. Our Dec-27 PT of A$13.70ps offers 22% upside from today's close.