Glencore plc (LON:GLEN) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Glencore has a “Moderate Buy” consensus rating: Five of six analysts recommend buying the shares, while one rates them a hold. The average 12-month price target is GBX 660, above the reported opening price of GBX 574.81.
• Legal risk has increased: Radiant World is seeking approximately $2 billion from Glencore in a Singapore lawsuit, while Glencore alleges that Radiant submitted falsified invoices and fabricated emails.
• Glencore’s shares recently moved above their 200-day moving average, potentially signaling improved long-term momentum, although the company carries substantial leverage with a debt-to-equity ratio of 108.47.

Glencore plc (LON:GLEN - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the six research firms that are covering the firm, Marketbeat reports. One investment analyst has rated the stock with a hold rating and five have issued a buy rating on the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is GBX 660.

Several equities analysts recently issued reports on the company. Royal Bank Of Canada restated an "outperform" rating and set a GBX 600 price objective on shares of Glencore in a research note on Monday, July 27th. Berenberg Bank lowered their target price on shares of Glencore from GBX 750 to GBX 740 and set a "buy" rating for the company in a research note on Friday, August 7th. Citigroup increased their target price on shares of Glencore from GBX 770 to GBX 780 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Jefferies Financial Group restated a "buy" rating and issued a GBX 700 price target on shares of Glencore in a research report on Monday, July 6th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Glencore from GBX 520 to GBX 510 and set a "neutral" rating for the company in a report on Thursday, July 30th.

Key Stories Impacting Glencore

Here are the key news stories impacting Glencore this week:

• Positive Sentiment: The stock recently moved above its 200-day moving average, a technical signal that may support investor confidence and indicate an improved longer-term trend. Glencore Share Price Passes Above 200 Day Moving Average
• Neutral Sentiment: Radiant World says Glencore assisted it when Jefferies investigated trades, while Glencore disputes Radiant’s broader allegations. The conflicting accounts make the eventual legal outcome difficult to assess. Radiant World says Glencore helped when Jefferies probed its trades
• Negative Sentiment: Radiant World has filed a Singapore lawsuit seeking approximately $2 billion, or about S$2.5 billion, from Glencore. The claim adds litigation risk and could result in a material cash cost if Radiant prevails. Radiant World seeks $2 billion from Glencore in lawsuit
• Negative Sentiment: Glencore has responded by accusing Radiant World of sending falsified invoices and fabricated emails to financial institutions. While the allegations could strengthen Glencore’s defense, they also highlight potentially costly legal, compliance and reputational issues surrounding the dispute. Glencore faces S$2.5 billion lawsuit as it alleges Radiant World fraud

Glencore Price Performance

Shares of LON GLEN opened at GBX 574.81 on Thursday. Glencore has a twelve month low of GBX 304.40 and a twelve month high of GBX 633.90. The company has a current ratio of 1.06, a quick ratio of 0.32 and a debt-to-equity ratio of 108.47. The company has a market capitalization of £67.46 billion, a price-to-earnings ratio of 12.77, a price-to-earnings-growth ratio of 0.43 and a beta of 0.51. The business has a 50 day simple moving average of GBX 563.16 and a 200-day simple moving average of GBX 556.25.

Glencore Company Profile

Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, we produce, process, recycle, source, market and distribute the commodities that support decarbonisation while meeting the energy needs of today. With over 150,000 employees and contractors and a strong footprint in over 35 countries in both established and emerging regions for natural resources, our marketing and industrial activities are supported by a global network of more than 50 offices.

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