Vale ( NYSE: VALE ) -2.2% in Monday's trading as RBC Capital downgraded shares to Sector Perform from Outperform with a $15 price target, trimmed from $16, saying the miner's Q4 production results were largely in line but lagging performance in base metals drives a drop in 2023 estimates.
While RBC's Tyler Broda said Vale ( VALE ) remains the best choice for iron ore exposure, he sees far more downside risk than upside to iron ore's 12-month price outlook after the seasonal Q1 rally and optimism around a China reopening, which the analyst thinks will prove underwhelming.
Following a strong stock price performance and with risks to iron ore markets and new potential Samarco liabilities, Broda believes Vale ( VALE ) shares have moved past fair value, adding the valuation of the miner's base metals stake sale could beat expectations but it also is well telegraphed.
Vale ( VALE ) could move from cash cow to growth if Cosan can "take control," Ricardo Fernandez writes in an analysis published recently on Seeking Alpha .
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Vale downgraded at RBC on risk to iron ore markets