Vale S.A. $VALE Resurrection Cross After Analyst Upgrades

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A Resurrection Cross has formed on $VALE stock on December 27, 2022. The stock is in a technical strong uptrend.

Vale stock chart on December 27 2022 with a Resurrection Cross pattern
Vale stock chart on December 27 2022 with a Resurrection Cross pattern

Vale upgraded at Morgan Stanley

Carlos De Alba, a Morgan Stanley analyst, upgraded Vale to Overweight from Equal Weight on December 9, 2022, with a $20 price target. According to De Alba, the reopening of China will continue to be advantageous for miners, but the road ahead will be difficult. The analyst predicts that the price of iron ore will increase in the first half of 2023 due to reduced supply and China’s decision to abandon its COVID Zero policy.

Vale price target raised at BMO Capital

On December 8, 2022, BMO Capital analyst David Gagliano maintained an Outperform rating on the stock while increasing the firm’s price target on Vale from $16 to $20. The company’s Vale Day presentation and longer-term operating targets are mentioned by the analyst, who still thinks the stock is undervalued. Gagliano adds that the stock’s risks and uncertainty are decreased by Value’s improved operating visibility for 2023–2024, which also translates into more reasonable normalized multiples.

Vale upgraded at Deutsche Bank

Liam Fitzpatrick, a Deutsche Bank analyst, raised Vale’s price target from $19 to $20 on November 23, 2022, elevating the stock from hold to buy. Vale is the analyst’s top choice among the major producers of iron ore. Fitzpatrick writes in a research note that investors should take advantage of the 30% decline from the year-to-date high to purchase a business with market-leading shareholder returns, medium-term growth flexibility, and minimal reinvestment requirements. The analyst claims that, in contrast to its significant competitors, Vale is well-positioned to steadily increase iron ore and base metal volumes over the next three years at low capex intensity, keeping investment levels under control and cash flows strong.

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