Canaccord has revised its rating on South32 (SOUHY, Financial), elevating it from a Sell to a Hold. Despite maintaining its price target at 125 GBp, the adjustment comes as the company's shares have encountered significant declines. Year-to-date, the stock has dropped 24%, and experienced a 39% plunge from its high in fiscal year 2025. This downturn is attributed to negative industrial demand sentiment linked to trade concerns.
Canaccord's upgrade reflects their assessment that the potential for further downside is now minimal given the current share price levels. The firm believes that the current valuation adequately reflects the challenges faced, and any further decline is unlikely.
