Vale SA Stock Rating Reaffirmed by Zacks (VALE)
Vale SA (NASDAQ:VALE)‘s stock had its “neutral” rating restated by Zacks in a report released on Monday. They currently have a $15.00 price target on the stock. Zacks‘s price objective suggests a potential upside of 8.46% from the company’s current price.
Zacks’ analyst wrote, “Vale reported weak results for the second quarter of 2014, with a fall in underlying earnings as well as revenues. Underlying earnings per ADR declined 15.4% year over year to $0.38 while revenues decreased 7.1% year over year to $9.9 billion. Results were mainly impacted by lower prices of iron ore along with a reduction in production volumes of most of the other commodities. Also, owing to environmental regulations and policies, the company may face uncertainty in future operations. However, the company’s continuing attempts to reduce costs resulted in a decline of 24% in SG&A expense, and a 43% decrease in stoppage costs in the second quarter of 2014. Additionally, Vale has a strong balance sheet owing to its efforts to reduce debt, while on the other hand, reduction in capital expenditure boosts free cash flow. The company also engages in research and development projects which are expected to translate into higher revenues going forward.”
A number of other firms have also recently commented on VALE. Analysts at Nomura reiterated a “buy” rating on shares of Vale SA in a research note on Friday, August 1st. They now have a $20.00 price target on the stock, down previously from $31.00. Separately, analysts at Jefferies Group reiterated a “hold” rating on shares of Vale SA in a research note on Thursday, July 24th. They now have a $15.50 price target on the stock, up previously from $13.00. Finally, analysts at Barclays upgraded shares of Vale SA from an “underweight” rating to an “equal weight” rating in a research note on Tuesday, July 8th. Seven analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Vale SA has a consensus rating of “Hold” and an average price target of $17.96.
Vale SA (NASDAQ:VALE) traded up 2.42% during mid-day trading on Monday, hitting $14.165. 4,698,572 shares of the company’s stock traded hands. Vale SA has a 52-week low of $12.29 and a 52-week high of $17.14. The stock has a 50-day moving average of $13.88 and a 200-day moving average of $13.65. The company has a market cap of $72.998 billion and a price-to-earnings ratio of 75.16. Vale SA also was the recipient of unusually large options trading on Friday. Stock traders acquired 20,779 put options on the company. This is an increase of approximately 129% compared to the typical volume of 9,075 put options.
Vale SA (NASDAQ:VALE) last released its earnings data on Thursday, July 31st. The company reported $0.38 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.44 by $0.06. On average, analysts predict that Vale SA will post $1.74 earnings per share for the current fiscal year.
Vale SA (NASDAQ:VALE) is a Brazil-based metals and mining company.
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