Vale (NYSE:VALE) Rating Increased to Sector Outperform at Scotiabank

Key Points

• Vale's rating was upgraded to sector outperform by Scotiabank, with a price target of $14.00, suggesting a potential upside of 28.68% from its current price.
• The company reported earnings of $0.50 per share for the previous quarter, beating consensus estimates, although its revenue fell short of expectations at $8.80 billion.
• Institutional investors have shown increasing interest, with significant purchases from firms like Invesco Ltd. and GQG Partners LLC, indicating a strong institutional backing for Vale.

Vale (NYSE:VALE - Get Free Report) was upgraded by research analysts at Scotiabank from a "sector perform" rating to a "sector outperform" rating in a report released on Thursday,Benzinga reports. The brokerage currently has a $14.00 price objective on the basic materials company's stock. Scotiabank's price target would suggest a potential upside of 28.68% from the company's current price.

Several other equities research analysts have also commented on the stock. Clarkson Capital started coverage on shares of Vale in a research note on Wednesday, September 3rd. They issued a "buy" rating and a $12.00 price objective for the company. JPMorgan Chase & Co. decreased their price objective on shares of Vale from $15.00 to $13.50 and set an "overweight" rating for the company in a research note on Thursday, September 4th. Zacks Research lowered shares of Vale from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 9th. Barclays increased their price objective on shares of Vale from $12.75 to $13.00 and gave the company an "overweight" rating in a research note on Wednesday, July 2nd. Finally, UBS Group reiterated a "neutral" rating and issued a $10.00 price objective (up previously from $9.00) on shares of Vale in a research note on Monday, August 4th. Seven research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Vale presently has an average rating of "Moderate Buy" and a consensus target price of $11.86.

Vale Price Performance

Shares of NYSE VALE opened at $10.88 on Thursday. Vale has a fifty-two week low of $8.06 and a fifty-two week high of $12.05. The stock has a market cap of $49.38 billion, a price-to-earnings ratio of 8.85 and a beta of 0.79. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.85 and a current ratio of 1.22. The firm's 50-day simple moving average is $10.12 and its 200 day simple moving average is $9.74.

Vale (NYSE:VALE - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The basic materials company reported $0.50 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.16. Vale had a net margin of 14.23% and a return on equity of 18.14%. The business had revenue of $8.80 billion for the quarter, compared to analysts' expectations of $9.54 billion. As a group, research analysts anticipate that Vale will post 1.85 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of VALE. GQG Partners LLC bought a new position in Vale in the 1st quarter valued at $371,778,000. Invesco Ltd. boosted its holdings in Vale by 1,534.8% in the 2nd quarter. Invesco Ltd. now owns 24,810,285 shares of the basic materials company's stock valued at $240,908,000 after purchasing an additional 23,292,629 shares during the period. Orbis Allan Gray Ltd boosted its holdings in Vale by 165.9% in the 1st quarter. Orbis Allan Gray Ltd now owns 31,257,989 shares of the basic materials company's stock valued at $311,955,000 after purchasing an additional 19,500,437 shares during the period. Fisher Asset Management LLC boosted its holdings in Vale by 31.8% in the 2nd quarter. Fisher Asset Management LLC now owns 21,705,260 shares of the basic materials company's stock valued at $210,758,000 after purchasing an additional 5,234,201 shares during the period. Finally, Massachusetts Financial Services Co. MA boosted its holdings in Vale by 38.0% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 15,932,405 shares of the basic materials company's stock valued at $159,005,000 after purchasing an additional 4,389,959 shares during the period. 21.85% of the stock is owned by institutional investors.

Vale Company Profile

Vale SA, together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through Iron Solutions and Energy Transition Materials segments. The Iron Solutions segment produces and extracts iron ore and pellets, manganese, and other ferrous products; and provides related logistic services.

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