HSBC Upgrades Vale (VALE) to Overweight

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An analyst at HSBC upgraded Vale S.A. (NYSE: VALE) from Neutral to Overweight Wednesday morning.

The analyst cited several factors behind the upgrade, including:

• Chinese macro data which will likely improve heading into the second half of this year
  
• support for iron ore spot prices at current levels
  
• reductions to consensus estimates are likely "over after a poor first-quarter and downward revisions to 2012 Street commodity forecasts..."
  
• attractive valuation and a 6 percent dividend yield which appears to be "sustainable over the coming few years..."

Despite the upgrade, shares of Vale trading on the NYSE are down 0.4 percent to $19.41 at last check.

For an analyst ratings summary and ratings history on Vale S.A. click here. For more ratings news on Vale S.A. click here.

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