What is Scotiabank's Forecast for Vale FY2025 Earnings?

Key Points

• Scotiabank has lowered its FY2025 earnings estimate for Vale S.A. from $2.03 to $1.94 per share, while maintaining a "Sector Outperform" rating with a price target of $14.00.
• Vale recently reported quarterly earnings of $0.50 per share, surpassing expectations, but its revenue of $8.80 billion fell short of the projected $9.54 billion.
• Hedge funds and institutional investors have shown active investment changes in Vale, with several firms significantly increasing their stakes in the company recently.

Vale S.A. (NYSE:VALE - Free Report) - Equities researchers at Scotiabank cut their FY2025 earnings estimates for Vale in a research note issued to investors on Wednesday, September 24th. Scotiabank analyst A. Salazar now expects that the basic materials company will earn $1.94 per share for the year, down from their previous estimate of $2.03. Scotiabank currently has a "Sector Outperform" rating and a $14.00 price target on the stock. The consensus estimate for Vale's current full-year earnings is $1.85 per share. Scotiabank also issued estimates for Vale's FY2026 earnings at $1.96 EPS.

Vale (NYSE:VALE - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The basic materials company reported $0.50 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.16. The company had revenue of $8.80 billion for the quarter, compared to analysts' expectations of $9.54 billion. Vale had a net margin of 14.23% and a return on equity of 18.14%.

VALE has been the topic of a number of other reports. Barclays increased their price target on shares of Vale from $13.50 to $13.70 and gave the company an "overweight" rating in a research report on Thursday, September 18th. Clarkson Capital started coverage on Vale in a research note on Wednesday, September 3rd. They issued a "buy" rating and a $12.00 price target for the company. UBS Group reaffirmed a "neutral" rating and issued a $10.00 price target (up previously from $9.00) on shares of Vale in a research note on Monday, August 4th. Zacks Research lowered Vale from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 9th. Finally, JPMorgan Chase & Co. dropped their price target on Vale from $15.00 to $13.50 and set an "overweight" rating for the company in a research note on Thursday, September 4th. Seven analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Vale presently has a consensus rating of "Moderate Buy" and an average target price of $11.93.

Vale Stock Up 0.6%

VALE stock opened at $10.89 on Friday. The company has a current ratio of 1.22, a quick ratio of 0.85 and a debt-to-equity ratio of 0.48. The company's 50 day moving average is $10.24 and its 200 day moving average is $9.79. The stock has a market cap of $49.43 billion, a price-to-earnings ratio of 8.85 and a beta of 0.79. Vale has a 1-year low of $8.06 and a 1-year high of $12.05.

Hedge Funds Weigh In On Vale

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Banque Transatlantique SA purchased a new position in Vale during the first quarter valued at $30,000. CENTRAL TRUST Co purchased a new position in Vale during the second quarter valued at $34,000. GAMMA Investing LLC lifted its position in Vale by 98.4% during the second quarter. GAMMA Investing LLC now owns 4,075 shares of the basic materials company's stock valued at $40,000 after buying an additional 2,021 shares during the period. J.Safra Asset Management Corp purchased a new position in Vale during the first quarter valued at $41,000. Finally, Golden State Wealth Management LLC lifted its position in Vale by 193.0% during the first quarter. Golden State Wealth Management LLC now owns 4,119 shares of the basic materials company's stock valued at $41,000 after buying an additional 2,713 shares during the period. Hedge funds and other institutional investors own 21.85% of the company's stock.

Vale Cuts Dividend

The company also recently disclosed a semi-annual dividend, which was paid on Wednesday, September 10th. Shareholders of record on Wednesday, August 13th were given a dividend of $0.3417 per share. The ex-dividend date of this dividend was Wednesday, August 13th. This represents a yield of 740.0%. Vale's dividend payout ratio (DPR) is currently 59.35%.

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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