- Stricter Chinese steel production cuts in the second half of 2021 keep on pressuring VALE and its peers.
- However, I have several arguments in favor of the opinion that the drop in quotes is too deep and the overreaction of the market is evident.
- VALE is heavily undervalued in terms of relative valuation.
- The NAV DCF model, built on fairly conservative assumptions, also speaks of underestimation.
- If everything plays out how I expect, I don't exclude a possibility of pushing off the local support level and flying back to $23 per share and higher. So buy more.
For further details see:
Vale: Buy The Dip On NAV Undervaluation And Market Overreaction