UBS upgrades Jiangxi Copper to buy on valuation

HONG KONG, Aug 15 (Reuters) - UBS upgraded Jiangxi Copper (0358.HK) to buy from neutral after the recent decline in its stock price far exceeded a fall in Shanghai copper prices.

Shares in Jiangxi have fallen 45 percent from their recent high on May 2 while copper prices have dropped only 12 percent in the same period, UBS analysts wrote.

But the brokerage cut its target price on the stock to HK$15.13 from HK$18.40 as it expects copper prices to fall another 10-15 percent on reduced Chinese demand.

Jiangxi Copper closed Thursday at HK$11.18.

UBS expects Jiangxi to post 35 percent growth in net profit for the first half when it announces its earnings on August 27.

(Reporting by Parvathy Ullatil; Editing by Dominic Whiting)