Scotiabank downgrades Vale to Sector Perform, expects better entry point

As previously reported, Scotiabank analyst Alfonso Salazar downgraded Vale to Sector Perform from Outperform with a price target of $16, down from $20. The firm fails to see conditions for a re-rating given the challenging situation that it expects for China’s steel industry, but anticipates a better entry point to arrive as it thinks the company’s valuation remains attractive it likes Vale’s ability to pay high dividends and continue with its buyback program, and believes the company is taking the rights steps with its strategy for both its Iron Solutions and Transition Metals business units, the analyst tells investors.