RBC Capital Issues a Hold Rating on Vale SA

By Ryan Adsit

RBC Capital analyst Sam Crittenden reiterated a Hold rating on Vale SA (NYSE: VALE) yesterday and set a price target of $11. The company’s shares opened today at $8.51.

According to TipRanks.com, Crittenden is ranked 0 out of 5 stars with an average return of -17.0% and a 19.2% success rate. Crittenden covers the Basic Materials sector, focusing on stocks such as Stillwater Mining Company, Claude Resources (USA), and Hecla Mining Company.

Currently, the analyst consensus on Vale SA is Moderate Buy and the average price target is $10, representing a 17.5% upside.

In a report issued on April 3, Credit Suisse also maintained a Hold rating on the stock with a $9 price target.

Based on Vale SA’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $7.84 billion and quarterly net profit of $482 million. In comparison, last year the company earned revenue of $5.75 billion and had a net profit of $1.65 billion.

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Vale SA engages in the production and exportation of iron ore, pellets, manganese, and iron alloys, which are raw materials needed for steelmaking. It operates through the following segments: Ferrous Minerals, Coal, Base Metals, Fertilizers and Others. The Ferrous Minerals segment includes the extraction of iron ore and the production of pellets, manganese ore, iron alloys, and coal, and logistics services. The Coal segment comprises the extraction of coal and its logistic services. The Base Metals segment involves the production of non-ferrous minerals, which include nickel, copper, and aluminum. The Fertilizers segment is comprised of three major groups of nutrients: potassium, phosphate, and nitrogen. The Others segment encompasses joint ventures and affiliates of other businesses. The company was founded on June 1, 1942 and is headquartered in Rio de Janeiro, Brazil.