(CercleFinance.com) – Jefferies is downgrading its recommendation on Anglo American from ‘buy’ to ‘hold’ with a price target maintained at 3,300 pence, the latter having been reached by the share price following a recent significant outperformance.
‘While Anglo is enjoying good organic growth and should benefit from a potential recovery in Chinese demand over the course of the year, iron ore and metallurgical coal prices are unsustainable and are expected to fall in the very near future’ , he warns.
The broker also considers that the valuation of the mining company of South African origin ‘is not sufficient to justify a buy position on the action because the risk/return ratio is now balanced’.
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