Anglo American downgraded to Sell from Hold at Berenberg

Berenberg analyst Richard Hatch downgraded Anglo American to Sell from Hold with a $13 price target. The analyst says risks around the company’s execution of its new strategy outweighs the reward potential. The most challenging aspect of Anglo’s organizational overhaul is the sale or demerger of its diamond unit De Beers, the analyst tells investors in a research note. While an initial public offering appears to be the most likely outcome at this point, achieving a valuation anywhere near the $7.6B book value “looks like a major challenge to us,” the firm contends.