Deutsche Bank analyst Liam Fitzpatrick upgraded Vale to Buy from Hold with a price target of $20, up from $19. The analyst names Vale his top pick among the iron ore majors. The 30% pullback from the year-to-date high is an opportunity to buy a company “with sector leading shareholder returns, medium-term growth optionality and low reinvestment needs,” Fitzpatrick tells investors in a research note. The analyst says that unlike its major peers, Vale is positioned to steadily increase iron ore and base metal volumes over the next three years at low capex intensity, “keeping investment levels contained and cash flows strong.”
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