Barclays Maintains an 'Overweight' on Vale S.A. (VALE); Lowers Price Target
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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 cut from $42 to $37.
Barclays analyst says, "Following Vale's 3Q11 results and conference call, we are revising our model and reducing our price target to US$37/shr (-12%) to incorporate: (i) lower iron ore price realizations during the 4Q11; (ii) the mark-to-market of weaker 3Q11 results; (iii) slower capex disbursements on rising execution challenges; (v) lower iron ore quality premium, and (vi) higher cost inflation. After the deep correction in iron ore spot prices, we believe that the risk/return for investing in Vale has improved. In our view, iron ore prices are very close to a bottom at US$117/dmt, and expect a rebound in the near-term (rebar/iron ore futures seem to have turned - leading indicator?). We have Vale trading on a 2012 EV/EBITDA of 4.7x vs. global peers at 4.3x."
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 $26.62 yesterday.
Barclays analyst says, "Following Vale's 3Q11 results and conference call, we are revising our model and reducing our price target to US$37/shr (-12%) to incorporate: (i) lower iron ore price realizations during the 4Q11; (ii) the mark-to-market of weaker 3Q11 results; (iii) slower capex disbursements on rising execution challenges; (v) lower iron ore quality premium, and (vi) higher cost inflation. After the deep correction in iron ore spot prices, we believe that the risk/return for investing in Vale has improved. In our view, iron ore prices are very close to a bottom at US$117/dmt, and expect a rebound in the near-term (rebar/iron ore futures seem to have turned - leading indicator?). We have Vale trading on a 2012 EV/EBITDA of 4.7x vs. global peers at 4.3x."
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 $26.62 yesterday.
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