Jefferies said satellite data showed finished copper inventories at Asian smelters had "significantly decreased" in 2020, while inventories at exchanges were also down.
"Inventories across tracked locations in Asia are down 15% year-to-date and should decrease further into year-end as the Chinese economy is reaccelerating following the Golden Week holidays," said Jefferies.
"Should inventory levels continue to decrease as Chinese demand stays strong and demand outside of China recovers, our and consensus copper price forecasts would likely be too low," said the New York-headquartered firm.
Jefferies recommended buying shares in copper miners Freeport McMoran and First Quantum Minerals to gain exposure to the red metal.
Jefferies has consistently repeated its bullish view on copper since the COVID-19 outbreak.
It said earlier this month the successful development of a vaccine coupled with reduced uncertainty following the US elections could release a wave of pent up macroeconomic demand, with base metals such as copper and nickel set to benefit as a result.