Vale price target lowered to $14 from $16 at Scotiabank

Scotiabank lowered the firm’s price target on Vale (VALE) to $14 from $16 and keeps a Sector Perform rating on the shares. Following the recent announcement of a definitive settlement for Samarco, the firm believes that a strong re-rating on Vale may only be possible in the long term and will be driven by the market’s perception that the Iron Solutions division will remain highly profitable, the analyst tells investors. The firm’s near-term concern is a scenario of weaker steel demand in China amid iron oversupply.