BMO Capital Reiterates a Sell Rating on Vale SA

By Carrie Williams

In a report released yesterday, David Gagliano from BMO Capital reiterated a Sell rating on Vale SA (NYSE: VALE), with a price target of $5. The company’s shares opened today at $8.42, close to its 52-week high of $9.18.

According to, Gagliano is a 3-star analyst with an average return of 4.5% and a 45.2% success rate. Gagliano covers the Basic Materials sector, focusing on stocks such as Stillwater Mining Company, Westmoreland Coal Company, and Cloud Peak Energy Inc.

Vale SA has an analyst consensus of Hold, with a price target consensus of $6.90.

Based on Vale SA’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $7.34 billion and quarterly net profit of $569 million. In comparison, last year the company earned revenue of $6.37 billion and had a GAAP net loss of $1.82 billion.

Vale SA engages in the production and export 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.