Vale (NYSE:VALE) Given New $22.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan raised Vale’s price target from $21.00 to $22.00 and maintained an “overweight” rating, implying approximately 62.66% upside from the $13.53 share price.
• Analyst sentiment remains cautious overall: Vale has a consensus “Hold” rating and an average price target of $16.04, despite JPMorgan’s more bullish view.
• Vale’s latest quarterly results fell short of expectations, with adjusted EPS of $0.36 versus the $0.46 consensus estimate and revenue of $10.24 billion versus the $10.47 billion forecast.

Vale (NYSE:VALE - Get Free Report) had its price objective upped by JPMorgan Chase & Co. from $21.00 to $22.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the basic materials company's stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 62.66% from the company's current price.

Other analysts have also recently issued research reports about the company. Scotiabank decreased their target price on Vale from $19.00 to $16.00 and set a "sector perform" rating on the stock in a report on Monday, July 20th. The Goldman Sachs Group cut Vale from a "buy" rating to a "neutral" rating and cut their price target for the company from $18.00 to $16.00 in a report on Monday, July 27th. Morgan Stanley reiterated an "equal weight" rating and set a $16.50 price target (down from $19.50) on shares of Vale in a research report on Wednesday, July 8th. Wells Fargo & Company lowered their price objective on shares of Vale from $16.00 to $15.00 and set an "equal weight" rating for the company in a research report on Thursday, July 9th. Finally, Wall Street Zen downgraded shares of Vale from a "buy" rating to a "hold" rating in a research note on Saturday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $16.04.

Vale Price Performance

Shares of NYSE VALE traded up $0.23 during mid-day trading on Wednesday, hitting $13.53. 22,428,900 shares of the stock were exchanged, compared to its average volume of 29,270,104. The company has a market cap of $61.39 billion, a P/E ratio of 27.56 and a beta of 0.49. The stock's fifty day simple moving average is $14.62 and its two-hundred day simple moving average is $15.38. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.77 and a current ratio of 1.19. Vale has a twelve month low of $10.71 and a twelve month high of $17.94.

Vale (NYSE:VALE - Get Free Report) last announced its earnings results on Thursday, July 30th. The basic materials company reported $0.36 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.10). Vale had a return on equity of 19.87% and a net margin of 5.11%.The business had revenue of $10.24 billion during the quarter, compared to analyst estimates of $10.47 billion. As a group, analysts forecast that Vale will post 1.9 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna lifted its holdings in Vale by 128.3% in the fourth quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna now owns 2,055 shares of the basic materials company's stock valued at $27,000 after buying an additional 1,155 shares during the period. Bruce G. Allen Investments LLC bought a new stake in shares of Vale during the 4th quarter valued at $33,000. Ramsey Quantitative Systems acquired a new position in shares of Vale in the 2nd quarter valued at $56,000. V Square Quantitative Management LLC acquired a new position in shares of Vale in the 1st quarter valued at $83,000. Finally, Quartz Partners LLC bought a new position in shares of Vale in the 1st quarter worth $161,000. Institutional investors own 21.85% of the company's stock.

Vale Company Profile

Vale SA is a Brazil-based global mining company and one of the world's major producers of iron ore and iron ore pellets, which are used primarily in steelmaking. The company also produces nickel, copper, manganese, coal and other mineral products, serving customers in the steel, energy and technology industries.

Founded in 1942 as Companhia Vale do Rio Doce, the company was privatized in 1997 and adopted the Vale name in 2007. Its operations are concentrated in Brazil, particularly in the states of Pará and Minas Gerais, while its base-metals business has mining and processing activities in countries including Canada and Indonesia.

Vale also operates an integrated logistics system that includes railways, ports and maritime transportation infrastructure used to move its products from mining regions to domestic and international markets.

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