Barclays on North America Metals & Mining: Initiating Coverage: Rising From the Depths
Tweet
Share
E-mailGet Alerts FCX Hot Sheet
Price: $77.89 +1.60%
Rating Summary:
28 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 6 | New: 57
Rating Summary:
28 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 6 | New: 57
Join SI Premium – FREE
Barclays on North America Metals & Mining: Initiating Coverage: Rising From the Depths
Barclays analyst, David Gagliano, said, "A buying opportunity, despite continued volatility. We are initiating coverage of the North America Metals & Mining sector with a 1-Positive sector rating. Volatility is inevitable as investors adjust to a muddled near-term global demand outlook, but we believe this will prove to be a buying opportunity for the following reasons: 1) the core macro data points that typically drive the shares are more likely to turn positive over the next 6-12 months, rather than continuing to be exceptionally weak; 2) underlying supply/demand fundamentals for most metals/bulks are not as weak as the equity market is implying, even after adjusting for slower consumption growth; 3) our scenario analysis suggests the stocks currently represent a favorable risk/reward opportunity (i.e., more upside than downside); and 4) a downward move on the global cost curve leaves most US metals & mining producers in a significantly better position than in prior downturns to manage through periods of weak prices and demand."
"Our top picks are Freeport-McMoRan C&G (NYSE: FCX)(PT$63), Stillwater Mining (NYSE: SWC)(PT$20), and CONSOL Energy (NYSE: CNX)(PT$63). We are initiating coverage on a total of 15 names. We initiate with 1-Overweight ratings on FCX, SWC, CNX, Alpha Natural (NSE: ANR)(PT$34), Peabody (NYSE: BTU)(PT$61), AK Steel (NYSE: AKS)(PT$14), and Century Aluminum (Nasdaq: CENX)($17). We initiate with 2-Equal Weight ratings on U.S. Steel (NYSE: X)(PT$30), Nucor (NYSE: NUE)(PT$46), Steel Dynamics (Nasdaq: STLD)(PT$17), Arch Coal (NYSE: ACI)(PT$22), Cloud Peak (NYSE: CLD)(PT$27), Patroit Coal (NYSE: PCX)(PT$15), Alcoa (NYSE: AA)(PT$13), and Noranda Aluminum (NYSE: NOR)(PT$11)."
Barclays analyst, David Gagliano, said, "A buying opportunity, despite continued volatility. We are initiating coverage of the North America Metals & Mining sector with a 1-Positive sector rating. Volatility is inevitable as investors adjust to a muddled near-term global demand outlook, but we believe this will prove to be a buying opportunity for the following reasons: 1) the core macro data points that typically drive the shares are more likely to turn positive over the next 6-12 months, rather than continuing to be exceptionally weak; 2) underlying supply/demand fundamentals for most metals/bulks are not as weak as the equity market is implying, even after adjusting for slower consumption growth; 3) our scenario analysis suggests the stocks currently represent a favorable risk/reward opportunity (i.e., more upside than downside); and 4) a downward move on the global cost curve leaves most US metals & mining producers in a significantly better position than in prior downturns to manage through periods of weak prices and demand."
"Our top picks are Freeport-McMoRan C&G (NYSE: FCX)(PT$63), Stillwater Mining (NYSE: SWC)(PT$20), and CONSOL Energy (NYSE: CNX)(PT$63). We are initiating coverage on a total of 15 names. We initiate with 1-Overweight ratings on FCX, SWC, CNX, Alpha Natural (NSE: ANR)(PT$34), Peabody (NYSE: BTU)(PT$61), AK Steel (NYSE: AKS)(PT$14), and Century Aluminum (Nasdaq: CENX)($17). We initiate with 2-Equal Weight ratings on U.S. Steel (NYSE: X)(PT$30), Nucor (NYSE: NUE)(PT$46), Steel Dynamics (Nasdaq: STLD)(PT$17), Arch Coal (NYSE: ACI)(PT$22), Cloud Peak (NYSE: CLD)(PT$27), Patroit Coal (NYSE: PCX)(PT$15), Alcoa (NYSE: AA)(PT$13), and Noranda Aluminum (NYSE: NOR)(PT$11)."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Canaccord Starts Amapa Minerals Holdings (AMAP:CN) at Buy
- Easterly Government Properties (DEA) PT Raised to $24 at RBC Capital
- Nutanix (NTNX) PT Raised to $75 at KeyBanc
Create E-mail Alert Related Categories
Analyst Comments, New CoverageRelated Entities
BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
