Barclays Maintains an 'Overweight' on Vale S.A. (VALE); Notes from Mozambique: Delivering in Coal is Positive, but Small NPV Contribution
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Price: $14.23 +2.37%
Rating Summary:
11 Buy, 15 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
11 Buy, 15 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Overweight' on Vale S.A. (NYSE: VALE) price target of $42.00.
Barclays analyst says, "Last week, we attended Vale's Investor Tour of its Moatize coal mine. We acknowledge this is a small and non-core business for Vale (2.5% our long-term EBITDA), however, we were positively impressed by the company's ability to achieve local community support and execution outside of iron ore. The delivery of a large/challenging project should help mitigate investor concerns on Vale's project execution capabilities (resulting from slower than expected volume growth during the past 3-4 years)."
"The mine site is striking, but logistics pose a sizeable challenge, in our view. The scale of construction works at the mine site surprised us (Phase 1 underway = 11Mtpa, with an 8.5Mtpa split in coking coal), however, transporting the coal hundreds of kilometers is a challenge (575km along the Sena railway to the port)."
"We retain our Overweight rating on Vale as we believe concerns over a sharp correction in iron ore spot prices are overdone."
For more ratings news on Vale S.A. click here and for the rating history of Vale S.A. click here.
Shares of Vale S.A. closed at $25.42 yesterday.
Barclays analyst says, "Last week, we attended Vale's Investor Tour of its Moatize coal mine. We acknowledge this is a small and non-core business for Vale (2.5% our long-term EBITDA), however, we were positively impressed by the company's ability to achieve local community support and execution outside of iron ore. The delivery of a large/challenging project should help mitigate investor concerns on Vale's project execution capabilities (resulting from slower than expected volume growth during the past 3-4 years)."
"The mine site is striking, but logistics pose a sizeable challenge, in our view. The scale of construction works at the mine site surprised us (Phase 1 underway = 11Mtpa, with an 8.5Mtpa split in coking coal), however, transporting the coal hundreds of kilometers is a challenge (575km along the Sena railway to the port)."
"We retain our Overweight rating on Vale as we believe concerns over a sharp correction in iron ore spot prices are overdone."
For more ratings news on Vale S.A. click here and for the rating history of Vale S.A. click here.
Shares of Vale S.A. closed at $25.42 yesterday.
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