Vale upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Marcio Farid upgraded Vale to Buy from Neutral with a price target of $19.50, up from $12.20. The analyst believes the current setup for Vale’s investment thesis “is unique due to a combination of tailwinds that has not been in place since at least 2014.” They include a balanced iron ore market for 2024, positive operational momentum, relatively low investor exposure, an attractive valuation and Goldman’s expectation of ongoing China policy support with iron ore being the most China-centric commodity, the analyst tells investors in a research note. The firm believes the stock’s rally “has legs.”