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VALE earns some upgrades this morning

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Morgan Stanley is just one of the big banks with positive comments on Latin America's biggest mining company. Despite the political noise surrounding a state-mandated change in CEO, VALE ( quote ) is still the fundamentally best positioned global miner out there. Iron ore prices are strong and VALE is the world leader in producing ore for China and other steel-hungry markets. For those who believe China will keep running those steel mills -- and that Japan now needs a lot of steel to rebuild -- VALE is the best long-term play out there. In the short term, of course, CEO Agnelli remains under pressure, but there will always be concerns that this cash cow will become the golden goose for the Brazilian government. Morgan Stanley believes VALE could be worth $46 per ADR share if the ore markets stay tight for the next few years. They also like the company's pipeline of projects in coal and copper -- we would add its interesting fertilizer operation to the mix -- as drivers of potential multiple expansion. Bottom line: This is a world-class company. If Wall Street is only now catching on, that is all right.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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