Morgan Stanley upgrades Vale, still sees compelling risk-reward

Morgan Stanley upgraded Vale (VALE) to Overweight from Equal Weight with a price target of $15, up from $13. Despite recent solid performance, the firm believes the stock still offers a compelling risk-reward driven by the company’s focus on disciplined capital allocation, operational excellence in the iron ore business, and attractive growth in copper. Further, cash disbursements and uncertainties related to dam accidents have materially diminished, the analyst tells investors in a research note.