Glencore: BarCap maintains 'Overweight' rating, cuts target
(CercleFinance.com) - Barclays Capital (BarCap) maintains its "Overweight" rating on the Glencore stock, although has cut its corresponding target price by 7.
5% to 370 pence, after cutting its 2018 to 2020 EBITDA estimates by 7%, 8% and 9% respectively.
Although the group's investor meeting was slightly disappointing, the broker underlines management's commitment to returning 100% of its free cash flow generated, which implies that at least 14% of the group's market capitalisation will be redistributed to them in 2019.
"Putting Glencore's mining assets on the same PE multiple as Anglo, BHP and Rio Tinto implies the marketing business is trading on 7x PE in 2019, which continues to look excessive to us," BarCap believes.
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.
5% to 370 pence, after cutting its 2018 to 2020 EBITDA estimates by 7%, 8% and 9% respectively.
Although the group's investor meeting was slightly disappointing, the broker underlines management's commitment to returning 100% of its free cash flow generated, which implies that at least 14% of the group's market capitalisation will be redistributed to them in 2019.
"Putting Glencore's mining assets on the same PE multiple as Anglo, BHP and Rio Tinto implies the marketing business is trading on 7x PE in 2019, which continues to look excessive to us," BarCap believes.
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.