real-time news and commentary for investors
Monday, Sep 9
Vale +2% after J.P. Morgan comes away bullish
- J. P. Morgan comes away bullish from its meeting with Vale’s (VALE +2%) top management, assigning a $25 price target, as it sees Vale's savings from cost-cutting are permanent and "present a great source of value generation."
- Vale so far has realized $1.6B in cost savings during H1, and while the company doesn't have an official savings target, it expects year-end 2013 to finish at more than double H1.
- Serra Sul S11D is Vale’s main project and J.P. Morgan thinks another $2B can be delivered from proper execution.
- Vale is more bullish than analysts on iron ore prices, expecting them to stay above $110/ton in the medium to long-term; J.P. Morgan thinks that’s too bullish but believes a long-term price below $100/ton is too conservative.
- No doubt helping boost Vale shares is strong China trade data; also RIO +2.2%, BHP +0.8%, CLF +1%.