Anglo American downgraded to Hold from Buy at Jefferies

Jefferies downgraded Anglo American (NGLOY) to Hold from Buy with a price target of 2,700 GBp, down from 3,200 GBp. BHP Group (BHP) has been unsuccessful in its attempt to acquire Anglo American as structural problems relating to inter-conditional demergers of Kumba and Amplats were too substantial to overcome, notes the firm, which sees significant upside to Anglo’s share price in the longer term, but cut its rating based on the risk of value leakage and delays as the Anglo break-up progresses. With the deal off the table, now it is “on the Anglo management team to execute on its own announced restructuring plan,” the analyst tells investors.