Glencore downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Alain Gabriel downgraded Glencore to Equal Weight from Overweight with a 510 GBp price target. Glencore’s deal to acquire Teck’s coal assets is transformational and the terms bettered expectations, the analyst tells investors in a research note. However, the capital commitments limit buybacks in the near term, while the free cash flow boost from the deal will not occur before the end of 2024, says the firm.