Dahlman Rose Cuts Price Target on Vale (VALE), Weaker Than Expected Q2 Results
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Price: $14.56 +2.32%
Rating Summary:
11 Buy, 15 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 15 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Dahlman Rose is maintaining its Buy rating on shares of Vale (NYSE: VALE), but is cutting its price target from $45 to $43 following its Q2 earnings.
The company released its Q2 results with EBITDA of $9.1 billion and EPS of $1.22. While the $9.1 billion was a record for the company, the firm was forecasting $12 billion in EBITDA and the Street was estimating $11 billion. The firm notes that the miss was largely due to lower-than-expected volumes and realized pricing from iron ore sales.
VALE announced that it plans on returning $8 billion to its shareholders with $5 billion through dividends and $3 billion in buybacks.
Management is anticipating a small increase in iron ore price realizations in the next quarter as negative carryover effects that reduced current quarter average realization will not be present.
The firm is lowering its FY11 and FY12 EBITDA estimates from $40.1 billion and $45.6 billion to $38.7 billion and $44.3 billion. For the third quarter, Dahlman Rose estimates EBITDA of $11 billion.
For more ratings news on Vale click here and for the rating history of Vale click here.
Shares of Vale closed at $32.50 yesterday.
The company released its Q2 results with EBITDA of $9.1 billion and EPS of $1.22. While the $9.1 billion was a record for the company, the firm was forecasting $12 billion in EBITDA and the Street was estimating $11 billion. The firm notes that the miss was largely due to lower-than-expected volumes and realized pricing from iron ore sales.
VALE announced that it plans on returning $8 billion to its shareholders with $5 billion through dividends and $3 billion in buybacks.
Management is anticipating a small increase in iron ore price realizations in the next quarter as negative carryover effects that reduced current quarter average realization will not be present.
The firm is lowering its FY11 and FY12 EBITDA estimates from $40.1 billion and $45.6 billion to $38.7 billion and $44.3 billion. For the third quarter, Dahlman Rose estimates EBITDA of $11 billion.
For more ratings news on Vale click here and for the rating history of Vale click here.
Shares of Vale closed at $32.50 yesterday.
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