Scotiabank Weighs in on Vale's FY2027 Earnings (NYSE:VALE)

Key Points

• Scotiabank lowered Vale’s FY2027 EPS estimate to $2.00 from $2.20 while maintaining a “Sector Perform” rating and a $16 price target. The firm’s estimate remains above the current-year consensus of $1.82 per share.
• Analyst sentiment remains cautious, with Vale carrying a consensus “Hold” rating and an average price target of $15.81; 12 of 16 analysts rate the stock Hold.
• Vale shares opened at $13.21, below their 50-day and 200-day moving averages, after the company recently missed quarterly earnings and revenue expectations. Institutional investors own 21.85% of the stock, and Vale paid a $0.3088 special dividend in September.

Vale S.A. (NYSE:VALE - Free Report) - Investment analysts at Scotiabank reduced their FY2027 EPS estimates for Vale in a research report issued to clients and investors on Tuesday, October 13th. Scotiabank analyst A. Salazar now anticipates that the basic materials company will earn $2.00 per share for the year, down from their previous estimate of $2.20. Scotiabank has a "Sector Perform" rating and a $16.00 price objective on the stock. The consensus estimate for Vale's current full-year earnings is $1.82 per share.

Several other brokerages also recently issued reports on VALE. Weiss Ratings reiterated a "hold (c)" rating on shares of Vale in a research note on Friday, October 2nd. Royal Bank Of Canada boosted their price target on Vale from $15.00 to $16.00 and gave the stock a "sector perform" rating in a research report on Wednesday, September 16th. UBS Group lowered their price target on Vale from $16.50 to $15.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 29th. Wells Fargo & Company dropped their price objective on Vale from $16.00 to $15.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 9th. Finally, Barclays dropped their price objective on Vale from $17.00 to $15.00 and set an "equal weight" rating on the stock in a research note on Tuesday. One equities research 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 issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $15.81.

Vale Stock Down 1.2%

Vale stock opened at $13.21 on Thursday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.19 and a quick ratio of 0.77. The company's 50-day moving average is $14.35 and its 200-day moving average is $15.29. The firm has a market capitalization of $59.95 billion, a PE ratio of 26.96 and a beta of 0.42. Vale has a fifty-two week low of $11.00 and a fifty-two week high of $17.94.

Vale (NYSE:VALE - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The basic materials company reported $0.36 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 the consensus estimate of $10.47 billion. Vale had a net margin of 5.11% and a return on equity of 19.87%.

Hedge Funds Weigh In On Vale

Large investors have recently modified their holdings of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Vale by 445.8% in 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 valued at $1,739,000 after acquiring an additional 94,466 shares in the last quarter. Nykredit A S bought a new stake in shares of Vale during the 2nd quarter valued at $3,162,000. Corient Private Wealth LP acquired a new stake in shares of Vale during the 2nd quarter worth $1,138,000. Amundi grew its holdings in shares of Vale by 27.4% during 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, Bank of Nova Scotia grew its holdings in shares of Vale by 116.2% during the 2nd quarter. Bank of Nova Scotia now owns 231,527 shares of the basic materials company's stock worth $3,482,000 after purchasing an additional 124,460 shares in the last quarter. 21.85% of the stock is owned by institutional investors.

Vale Dividend Announcement

The business also recently disclosed a special dividend, which was paid on Thursday, September 10th. Shareholders of record on Thursday, August 13th were issued a $0.3088 dividend. The ex-dividend date was Thursday, August 13th. Vale's payout ratio is currently 89.80%.

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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