Glencore: shares down slightly; J.P. Morgan downgrades
(CercleFinance.com) - Shares in global mining giant Glencore are trading lower today, after J.
P. Morgan downgraded the stock from "overweight" to "neutral" and removed it from its "Analyst Focus List."
In a note sent to clients, the broker acknowledges that Glencore's valuation has become "enticing" after the shares lost 20% in 2018 due to stock specific risks on its activities in the Democratic Republic of the Congo, that have culminated in a US DoJ investigation.
"Yet we no longer believe its attractive valuation alone can adequately attract a new audience of long-term investors, until these issues are resolved,” the broker wrote in a note.
J.P. Morgan has also cut its target price for the shares - from 520 pence to 370 pence.
The Glencore stock is currently down 0.8% at 293.6 pence.
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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.
P. Morgan downgraded the stock from "overweight" to "neutral" and removed it from its "Analyst Focus List."
In a note sent to clients, the broker acknowledges that Glencore's valuation has become "enticing" after the shares lost 20% in 2018 due to stock specific risks on its activities in the Democratic Republic of the Congo, that have culminated in a US DoJ investigation.
"Yet we no longer believe its attractive valuation alone can adequately attract a new audience of long-term investors, until these issues are resolved,” the broker wrote in a note.
J.P. Morgan has also cut its target price for the shares - from 520 pence to 370 pence.
The Glencore stock is currently down 0.8% at 293.6 pence.
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.