- Vale (NYSE:VALE) +1.6% premarket after Credit Suisse upgrades shares to Outperform from Neutral and raises its price target to $15 from $9.50, citing positive structural changes in China and the company's highly qualified team in place to deliver a deleveraging strategy.
- Credit Suisse says Vale is its preferred name for exposure to the current uphill commodity cycle, as the firm raises its iron ore forecast for 2018 to $67.20/ton and $62.50/ton for 2019, from a respective $55 and $48, as a combination of strong margins of steelmakers in China and high capacity utilization of the steel industry in the country has caused an increase in demand for high-grade ore.
- The firm thinks Vale's focus on capital allocation, cost reduction and sales volume optimization should drive the stock to new highs.