RBC Capital cuts Vale to Hold with a $16 target

On 15 September, analyst Ben Davis of RBC Capital downgraded Brazilian mining company Vale SA to a Hold rating. Davis set a price target of $16.00 for the stock, while Vale shares closed at $14.47.

The broader analyst consensus tracked by TipRanks also stands at Hold, with an average price target of $16.42. Davis covers the basic materials sector, including Glencore, Valterra Platinum Limited, and Rio Tinto, and carries a 25.2% average return with a 69.72% success rate.

For the quarter ended 30 June, Vale posted quarterly revenue of $10.49 billion and a net profit of $1.35 billion. That compares with revenue of $8.8 billion and net profit of $2.12 billion in the same period last year.

Corporate insider sentiment has been positive across 16 tracked insiders, with more insider buying over the past quarter than earlier this year. Last month, Andre Viana Madeira, a Director at Vale, bought 11 shares for a total of $163.19.