Glencore: remains Barclays 'top pick'
(CercleFinance.com) - Barclays Capital has placed Glencore its "top pick" in the mining sector and maintains its overweight rating with a target price for 450 pence for the stock, seeing "catalysts driving earnings momentum in the near term.
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Conditions look ripe for the group's commodities marketing business to deliver at least the top of its guidance range over the next few years, the broker writes in a research note.
BarCap also deems valuations "attractive," as the shares are trading on compelling relative valuation metrics, such as a P/E of 10.1x.
Stripping out the marketing business, the Glencore stock is trading at a P/E that is 37%-33% discounted relative to mining peers, a level that seems "difficult to justify" according to BarCap.
Copyright (c) 2018 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.
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Conditions look ripe for the group's commodities marketing business to deliver at least the top of its guidance range over the next few years, the broker writes in a research note.
BarCap also deems valuations "attractive," as the shares are trading on compelling relative valuation metrics, such as a P/E of 10.1x.
Stripping out the marketing business, the Glencore stock is trading at a P/E that is 37%-33% discounted relative to mining peers, a level that seems "difficult to justify" according to BarCap.
Copyright (c) 2018 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.