Stock Market News
JP Morgan reiterates 'overweight' on Anglo American, Glencore, Vedanta and Kaz
Analysts at JP Morgan reiterated their 'overweight' stance on shares of Anglo American, Glencore, Vedanta and KAZ Minerals.
On Anglo American, they said the company had "scope" to beat expectations, highlighting the improving risk profile of its activities in South Africa, as highlighted by the recent High Court ruling in that country, adding that a restructuring of its operations there remained a "valuable" - if distant - option.
Glencore also had its attractions, they argued. Trading on an EV/EBITDA multiple of 5.0 to 4.2 for 2018 and 2019, respectively, on their estimates it was the second cheapest diversified miner - behind Anglo American (which was on 3.8 and 3.7 times' EV/EBITDA).
Back out the marketing division and those multiples were even more "compeling", at 4.3 and 3.7, with the outfit also offering a "well-articulated" medium-term capital allocation strategy - "which could result in above-consensus shareholder returns."
In the case of Vedanta, the analysts called attention to its "attractive" late cycle commodity mix, which when combined with its operational and financial gearing made it their prefered name.
Among base metals, the investment bank's "favoured" producer was KAZ Minerals, which was offering growth, low-cost operations, attractive valuation (5.6- 5.2x 2018/2019E EV/EBITDAs) and an ongoing transfer of value from debt to equity holders.
JP Morgan lifted its target price on Anglo's shares marginally, from 2,000p to 2,010p, and did the oppossite with KAZ's, trimming its target from 1,020p to 1,000p.
On Anglo American, they said the company had "scope" to beat expectations, highlighting the improving risk profile of its activities in South Africa, as highlighted by the recent High Court ruling in that country, adding that a restructuring of its operations there remained a "valuable" - if distant - option.
Glencore also had its attractions, they argued. Trading on an EV/EBITDA multiple of 5.0 to 4.2 for 2018 and 2019, respectively, on their estimates it was the second cheapest diversified miner - behind Anglo American (which was on 3.8 and 3.7 times' EV/EBITDA).
Back out the marketing division and those multiples were even more "compeling", at 4.3 and 3.7, with the outfit also offering a "well-articulated" medium-term capital allocation strategy - "which could result in above-consensus shareholder returns."
In the case of Vedanta, the analysts called attention to its "attractive" late cycle commodity mix, which when combined with its operational and financial gearing made it their prefered name.
Among base metals, the investment bank's "favoured" producer was KAZ Minerals, which was offering growth, low-cost operations, attractive valuation (5.6- 5.2x 2018/2019E EV/EBITDAs) and an ongoing transfer of value from debt to equity holders.
JP Morgan lifted its target price on Anglo's shares marginally, from 2,000p to 2,010p, and did the oppossite with KAZ's, trimming its target from 1,020p to 1,000p.
Related share prices |
---|
Anglo American (AAL) share price |
Vedanta Resources (VED) share price |
Kaz Minerals (KAZ) share price |
Evraz (EVR) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price