Vale (NYSE:VALE) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised Vale’s price target from $15 to $16 while maintaining a “sector perform” rating, implying 11.46% upside from the prior close.
• Analyst sentiment remains cautious: Vale has a consensus “Hold” rating, with an average price target of $16.08, despite one Strong Buy and two Buy ratings.
• Vale shares fell 0.8% to $14.36, and the company recently missed quarterly expectations, reporting $0.36 in EPS versus the $0.46 consensus and revenue of $10.24 billion versus $10.47 billion expected.

Vale (NYSE:VALE - Get Free Report) had its target price hoisted by research analysts at Royal Bank Of Canada from $15.00 to $16.00 in a report released on Wednesday, Benzinga reports. The firm presently has a "sector perform" rating on the basic materials company's stock. Royal Bank Of Canada's target price suggests a potential upside of 11.46% from the stock's previous close.

Several other equities research analysts have also recently weighed in on VALE. Freedom Broker cut Vale from a "hold" rating to a "strong sell" rating in a report on Thursday, September 3rd. Bank of America restated a "neutral" rating and issued a $16.00 price objective (down from $18.00) on shares of Vale in a report on Wednesday, August 5th. The Goldman Sachs Group lowered shares of Vale from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $18.00 to $16.00 in a research note on Monday, July 27th. Sanford C. Bernstein increased their target price on shares of Vale from $12.00 to $12.50 and gave the stock a "market perform" rating in a report on Wednesday, September 9th. Finally, Morgan Stanley reissued an "equal weight" rating and set a $16.50 target price (down from $19.50) on shares of Vale in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Vale currently has a consensus rating of "Hold" and an average price target of $16.08.

Vale Trading Down 0.8%

Shares of NYSE:VALE traded down $0.12 during trading on Wednesday, reaching $14.36. 24,110,197 shares of the company were exchanged, compared to its average volume of 29,423,803. The firm has a market capitalization of $65.16 billion, a PE ratio of 29.28 and a beta of 0.49. The business's fifty day simple moving average is $14.70 and its 200-day simple moving average is $15.53. Vale has a 12-month low of $10.58 and a 12-month high of $17.94. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.19 and a quick ratio of 0.77.

Vale (NYSE:VALE - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.46 by ($0.10). The firm had revenue of $10.24 billion during the quarter, compared to analysts' expectations of $10.47 billion. Vale had a net margin of 5.11% and a return on equity of 19.87%. On average, research analysts anticipate that Vale will post 1.9 EPS for the current year.

Hedge Funds Weigh In On Vale

Several institutional investors and hedge funds have recently added to or reduced their stakes in VALE. Tidal Investments LLC lifted its position in shares of Vale by 15.1% during the second quarter. Tidal Investments LLC now owns 423,725 shares of the basic materials company's stock valued at $6,373,000 after buying an additional 55,569 shares during the last quarter. Integrated Wealth Concepts LLC boosted its position in Vale by 7.9% in the second quarter. Integrated Wealth Concepts LLC now owns 83,074 shares of the basic materials company's stock valued at $1,249,000 after buying an additional 6,090 shares during the last quarter. RFG Advisory LLC acquired a new position in Vale in the 2nd quarter worth approximately $178,000. Baird Financial Group Inc. increased its holdings in Vale by 3.8% in the 2nd quarter. Baird Financial Group Inc. now owns 377,893 shares of the basic materials company's stock worth $5,684,000 after buying an additional 13,754 shares during the period. Finally, West Family Investments Inc. purchased a new position in Vale during the 2nd quarter worth approximately $478,000. Hedge funds and other institutional investors own 21.85% of the company's stock.

Vale Company Profile

Vale SA is a Brazilian mining and logistics company headquartered in Rio de Janeiro. Its principal business is the production of iron ore and iron ore pellets, which are supplied to steelmakers around the world. The company also produces nickel, copper, manganese, coal and other mineral products.

Vale operates mining, processing, transportation and logistics infrastructure, including railways, ports and maritime terminals. Its operations and projects span Brazil and other jurisdictions, including Canada and Indonesia, enabling the company to serve customers in international markets.

The company was established in 1942 as Companhia Vale do Rio Doce and was privatized in 1997.

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