Barclays analyst Amos Fletcher downgraded Vale S.A. (NYSE: VALE) from Overweight to Equalweight with a price target of $17.00 (from $16.50).

The analyst comments: "We downgrade Vale to EW from OW reflecting the closure of its valuation gap: The stock is trading on spot FCF yields of 5.0/7.6/9.2% in 2026/27/28E and EV/EBITDA multiples of 5.2/4.8/4.6x. Following a strong YTD performance (+35% vs. IO flat), Vale no longer trades at a material discount to Australian peers following recent outperformance – EV/EBITDA discount to peers now sits at 10%, the tightest since 2020. The current share price is consistent with an iron ore price of $130/t based on historical correlations since January 2015 vs. spot $107/t, our $102/t forecast for CY26 and declining thereafter, and an implied IO price of $90/t six months ago. Seasonality is likely to be a headwind to IO pricing over coming months. While Vale has delivered strong operational performance and stability in the last 18 months, we believe valuation and commodity price momentum are likely to be headwinds to further outperformance near term."

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

Shares of Vale S.A. closed at $17.78 yesterday.