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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