Fortescue Metals upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded Fortescue Metals to Overweight from Neutral with an unchanged price target of A$23. The analyst cites valuation for the upgrade with the shares down 36% year-to-date. Negative sentiment around China steel demand, elevated China port inventory, and an improving iron ore supply outlook over the coming years are weighing on sentiment, but the stock’s “valuation buffer now accounts for the risk of prices moving lower,” the analyst tells investors in a research note. It believes investor should take advantage of the uncertainty.