Shares of metals and mining company Vale look too cheap to ignore after a major de-rating, according to JPMorgan.
Analyst Rodolfo Angele upgraded Vale to overweight from neutral, citing an inexpensive valuation after the more than 27% slump in shares year to date.
VALE YTD mountain Vale shares in 2023 "Vale had a very challenging start to the year, marked by low volumes, operating challenges and high costs," he wrote.
Angele lifted his price target on U.S.-listed shares to $16 from $15, reflecting more than 21% upside from Thursday's close.
Along with the discounted stock price, Angele sees an attractive short-term setup for volumes as operations return to the Torto dam.
Persons:
Rodolfo Angele, Vale, Angele, Michael Bloom
Organizations:
JPMorgan, Vale
Locations:
China, 4Q23