Anglo American: Oddo cuts target price
(CercleFinance.com) - This morning an analyst at Oddo BHF confirmed a "buy" rating on the Anglo American share, although has cut his corresponding target price, with the group having reduced its production outlook.
Management believes that it can compensate part of the loss in refined production and reduce inventory by the end of the year. However, it will probably take two years to fully process unrefined production, the broker said.
Oddo BHF has therefore reduced its target price for the share om 2,500 pence to 2,400 pence. Even so, Anglo American remains the broker's best pick in the mining sector, which benefits from a favourable mix of late cycle commodities (diamonds, platinoids, coal, etc.). As proof, although it has been reduced, Oddo BHF's target price suggests upside potential of 43%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Management believes that it can compensate part of the loss in refined production and reduce inventory by the end of the year. However, it will probably take two years to fully process unrefined production, the broker said.
Oddo BHF has therefore reduced its target price for the share om 2,500 pence to 2,400 pence. Even so, Anglo American remains the broker's best pick in the mining sector, which benefits from a favourable mix of late cycle commodities (diamonds, platinoids, coal, etc.). As proof, although it has been reduced, Oddo BHF's target price suggests upside potential of 43%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.