Vale downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Vale (VALE) to Equal Weight from Overweight with a price target of $11.30, down from $14.50. The firm says decelerating global growth will pose challenges for mining stocks, particularly if China economic policy :remains modest and reactive.” Amid demand uncertainty, Morgan Stanley prefers base metal equities verses iron ore names on tighter supply outlooks, the analyst tells investors in a research note. While the firm continues to see long-term value in Vale’s assets and is encouraged by a “clear” 2030 vision, it now believes the stock will continue to trade below intrinsic value in the short-term amid uncertainty around the iron ore supply/demand outlook and prospects of lower prices.