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UPDATE: Deutsche Bank Lowers PT on Vale SA Following the Tide Going Out

Related VALE
Credit Suisse Lowers Vale Price Target To Reflect Deflated Commodity Prices
Morgan Stanley Sees Good Things From Vale SA Investor Day

In a report published Wednesday, Deutsche Bank analyst Jorge Beristain reiterated a Buy rating on Vale SA (NYSE: VALE), but lowered the price target from $22.00 to $20.00.

In the report, Deutsche Bank noted, “With the tide apparently having gone out for key global metals and bulk commodities, NA Metals & Mining managements will simply have to learn to make do with less free cash flow, smaller projects and smaller m&a deals than what were possible during boom times. The clarion call for managements now is to live within their Balance Sheet means. This calls for increased cooperation and heightened creativity for the funding of next generation growth projects and a tighter focus on the bottom-line. Those that heed the call should be the relative winners. Unfortunately, large debts limit flexibility and those continuing to deficit spend will risk downgrades of Investment Grade ratings.”

Vale SA closed on Tuesday at $15.56.

Latest Ratings for VALE

DateFirmActionFromTo
Dec 2014Credit SuisseMaintainsUnderperform
Dec 2014JP MorganMaintainsOverweight
Nov 2014Credit SuisseMaintainsNeutral

View More Analyst Ratings for VALE
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Jorge BeristainAnalyst Color Price Target Analyst Ratings

 

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