The word on Wall Street
According to the data compiled by Thomson Reuters, 36.4% of Wall Street analysts recommend a “buy” on Vale (VALE), while 55% of the analysts rate it as a “hold.” Vale’s target price is $9.95, which implies an upward potential of 8%.
In the past year, Vale’s target price has risen 107%, mostly due to company-specific factors like debt, cost reduction, and the start of its S11D project. In contrast, the target prices for its mining peers (XME) such as Rio Tinto (RIO) and BHP Billiton (BHP) haven’t seen such an improvement.
Reaction to results
After the results, Jefferies reiterated its “hold” rating for Vale stock. The firm currently has a target price of $8.5 on the stock. Credit Suisse (CS) also reaffirmed its “hold” rating for Vale on July 27, 2017. The brokerage has a $8.0 price target for Vale stock.
Other rating changes
Apart from these target price changes, Vale saw its last upgrade on May 31, 2017, from HSBC. The firm upgraded Vale from “hold” to “buy” and increased the price target from $8.67 to $8.76.
BMO Capital Markets also upgraded the stock from “underperform” to “market perform” in March 2017. The firm increased its target price from $7 to $10. The upgrade was mainly to reflect the firm’s new commodity price forecasts.