VALE - Vale Q1 2024: Decent Results And Surprise With Provisions

2024-04-26 11:17:14 ET

Summary

• Vale's results in 1Q24 were decent and in line with expectations, the only surprise was the provision guidance.
• The company has been showing a sequential increase in iron ore volumes, which indicates resilient demand from China despite doubts.
• Vale has a 31% discount to its peers in terms of EV/EBITDA multiple, making it an attractive investment with strong margins and competitive cash costs.

Investment Thesis

I recommend buying Vale S.A. shares ( VALE ) after the 1Q24 results. As I said in my coverage initiation report , China is seeking a new model of economic growth to complement the real estate sector, which previously contributed 20% of China's GDP....

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