Goldman Sachs analyst Marcio Farid has maintained their bullish stance on VALE stock, giving a Buy rating on November 13.
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Marcio Farid has given his Buy rating due to a combination of factors that highlight Vale SA’s strategic growth potential and financial positioning. One of the key reasons is the company’s focus on expanding its base metals segment, particularly copper, which is expected to replace iron ore as a primary growth driver. Vale’s plan to double its copper capacity by 2035, despite technical challenges, indicates a long-term commitment to enhancing its production capabilities.
Additionally, Vale’s capital allocation strategies and cost management improvements, especially in nickel, support the Buy rating. The anticipated shift in capital expenditure from iron ore to base metals, with a potential investment of over $1 billion annually, aligns with the company’s growth objectives. Furthermore, the possibility of adjusting Vale’s net debt target, contingent on increased EBITDA through enhanced production and cost efficiencies, underscores the firm’s robust financial strategy. These elements collectively contribute to the positive outlook for Vale’s stock.
In another report released on November 13, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $14.50 price target.