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Credit Suisse Vale as preferred stock for commodity upcycle

Mining News - Published on Thu, 07 Dec 2017

Image Source: capitalw.or
Seeking Alpha reported that Vale +1.6% premarket after Credit Suisse upgrades shares to Outperform from Neutral and raises its price target to USD 15 from USD 9.50, citing positive structural changes in China and the company's highly qualified team in place to deliver a deleveraging strategy.

Credit Suisse said that Vale is its preferred name for exposure to the current uphill commodity cycle, as the firm raises its iron ore forecast for 2018 to USD 67.20/ton and USD 62.50/ton for 2019, from a respective USD 55 and USD 48, as a combination of strong margins of steelmakers in China and high capacity utilization of the steel industry in the country has caused an increase in demand for high-grade ore.

The firm thinks Vale's focus on capital allocation, cost reduction and sales volume optimization should drive the stock to new highs

Source :

Posted By : Rabi Wangkhem on Thu, 07 Dec 2017
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