RBC Capital has downgraded Vale (VALE, Financial) from Outperform to Sector Perform, adjusting the stock's price target to $11 from a previous $12. This adjustment follows Vale's recent strong performance and a diminished valuation gap when compared with industry counterparts BHP and Rio Tinto. RBC's analysis suggests that Vale's future prospects have become more neutral.
The firm indicates that while iron ore miners, including Vale, face significant downside risks, these challenges are to a large extent already reflected in current stock valuations. Despite the downgrade, RBC's revised outlook implies a cautious stance, emphasizing the current pricing of these risk factors in the market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Vale SA (VALE, Financial) is $12.65 with a high estimate of $16.50 and a low estimate of $10.00. The average target implies an upside of 40.51% from the current price of $9.00. More detailed estimate data can be found on the Vale SA (VALE) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Vale SA's (VALE, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vale SA (VALE, Financial) in one year is $11.45, suggesting a upside of 27.22% from the current price of $9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vale SA (VALE) Summary page.
