Scotiabank Has Pessimistic Opinion of Vale FY2026 Earnings

Key Points

• Scotiabank cut Vale’s FY2026 EPS forecast to $1.66 from $2.22 and maintained a “Sector Perform” rating with a $16 price target. The revised estimate is below the $1.82 analyst consensus.
• Vale has a broadly cautious analyst outlook, with a consensus “Hold” rating and average target price of $15.81; several firms recently lowered their targets or ratings.
• Vale’s shares opened at $13.01, while its latest quarterly results missed expectations, reporting $0.36 EPS versus $0.46 expected and revenue of $10.24 billion versus $10.47 billion estimated.

Vale S.A. (NYSE:VALE - Free Report) - Investment analysts at Scotiabank decreased their FY2026 earnings per share (EPS) estimates for Vale in a report issued on Tuesday, October 13th. Scotiabank analyst A. Salazar now anticipates that the basic materials company will earn $1.66 per share for the year, down from their prior forecast of $2.22. Scotiabank has a "Sector Perform" rating and a $16.00 price target on the stock. The consensus estimate for Vale's current full-year earnings is $1.82 per share.

Several other research firms also recently commented on VALE. Freedom Broker downgraded shares of Vale from a "hold" rating to a "strong sell" rating in a report on Thursday, September 3rd. Barclays reduced their target price on shares of Vale from $17.00 to $15.00 and set an "equal weight" rating for the company in a report on Tuesday. Wells Fargo & Company reduced their target price on shares of Vale from $16.00 to $15.00 and set an "equal weight" rating for the company in a report on Thursday, July 9th. Bank of America restated a "neutral" rating and set a $16.00 target price (down from $18.00) on shares of Vale in a research report on Wednesday, August 5th. Finally, The Goldman Sachs Group lowered shares of Vale from a "buy" rating to a "neutral" rating and lowered their price target for the company from $18.00 to $16.00 in a report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Vale presently has a consensus rating of "Hold" and an average target price of $15.81.

Vale Stock Performance

Shares of NYSE VALE opened at $13.01 on Friday. The company has a current ratio of 1.19, a quick ratio of 0.77 and a debt-to-equity ratio of 0.45. Vale has a 12 month low of $11.00 and a 12 month high of $17.94. The company has a 50 day simple moving average of $14.32 and a two-hundred day simple moving average of $15.27. The stock has a market cap of $59.03 billion, a price-to-earnings ratio of 7.46 and a beta of 0.42.

Vale (NYSE:VALE - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The basic materials company reported $0.36 earnings per share 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.

Institutional Trading of Vale

A number of institutional investors have recently made changes to their positions in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Vale by 445.8% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 115,656 shares of the basic materials company's stock worth $1,739,000 after purchasing an additional 94,466 shares during the last quarter. Nykredit A S acquired a new stake in Vale in the 2nd quarter valued at about $3,162,000. Corient Private Wealth LP purchased a new position in Vale in the 2nd quarter worth approximately $1,119,000. Amundi lifted its stake in Vale by 27.4% in the 2nd quarter. Amundi now owns 2,243,230 shares of the basic materials company's stock worth $33,738,000 after purchasing an additional 482,313 shares in the last quarter. Finally, Kapitalo Investimentos Ltda boosted its holdings in shares of Vale by 16.6% during the 2nd quarter. Kapitalo Investimentos Ltda now owns 766,128 shares of the basic materials company's stock worth $11,523,000 after purchasing an additional 109,092 shares during the last quarter. 21.85% of the stock is owned by institutional investors and hedge funds.

Vale Dividend Announcement

The business also recently declared a special dividend, which was paid on Thursday, September 10th. Investors of record on Thursday, August 13th were given a dividend of $0.3088 per share. The ex-dividend date was Thursday, August 13th. Vale's dividend payout ratio is 89.80%.

About Vale

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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