Vale downgraded to Neutral at BofA on challenged iron ore outlook

As previously reported, BofA downgraded Vale to Neutral from Buy with a price target of $13, down from $20. The firm struggles to see short-term upside potential for iron ore despite the large drop in iron ore prices year-to-date, says the analyst, who also sees potential “bottom-up headwinds,” including additional Samarco provisions that limit extra dividend potential, renegotiation of railroad concession contract, and CEO succession.