Bank of America Securities analyst Caio Ribeiro maintained a Hold rating on Vale SA (VALE – Research Report) yesterday and set a price target of $9.50.
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Caio Ribeiro’s rating is based on a mix of valuation and market outlook considerations for Vale SA. The company’s recent financial performance showed a proforma EBITDA of $4.119 billion, which was slightly above Bank of America’s estimate but below the broader market consensus. This performance was bolstered by favorable pricing in iron ore and other metals, as well as increased shipments of copper and nickel. However, despite these positive aspects, the iron ore production volumes were slightly below expectations.
Another factor influencing the Hold rating is the company’s financial leverage, with the net debt remaining stable but within a targeted range. While Vale announced a dividend and a share buyback program, which are positive for shareholders, the overall valuation appears fair at 5.2x EV/EBITDA for 2025. Additionally, there is a cautious outlook on iron ore, which tempers the enthusiasm for a more bullish rating. Therefore, based on these factors, Ribeiro maintains a neutral stance, reflecting a balance between potential growth and existing risks.
According to TipRanks, Ribeiro is an analyst with an average return of -0.9% and a 45.83% success rate. Ribeiro covers the Basic Materials sector, focusing on stocks such as Vale SA, Southern Copper, and Ternium SA.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a $13.00 price target.