Bloomberg reported that Vale SA, the world biggest iron ore producer was downgraded to hold from buy at Raymond James & Associates Inc on the stock valuation.
Vale has increased 65% this year compared with the Bovespa index 64% gain. The Rio de Janeiro-based company trades at 19.8 times next year earnings, compared with the Bovespa 15.5 times, Bloomberg data show.
Mr Francisco Schumacher an analyst with Raymond James in Buenos Aires said “At current levels, we believe our earnings forecast is fully baked into the stock price.”
Brazilian markets are closed for a holiday. Vale American depositary receipts rose 2.4% to USD 26.11 at 4 PM in New York trading after reports showing growth in US and Chinese manufacturing bolstered the outlook for commodities.
