Oil prices rise on US-China trade progress, supply jitters persist
Investing.com - Bernstein downgraded Glencore Plc (LON:GLEN) from Outperform to Market Perform on Wednesday, while reducing its price target to GBP3.75 from GBP3.85.
The downgrade comes as Bernstein cites "somewhat full valuation" with limited upside potential to its price target. The firm notes that Glencore currently trades at a modestly higher multiple compared to its five-year average, despite operating at "arguably above-midcycle commodity prices."
Bernstein highlighted additional concerns, including the risk of a potential copper production miss in the upcoming production report scheduled for October 29, and increased political risk ahead of Argentina’s midterm elections on October 26.
The research firm specifically mentioned that Glencore hosts two large longer-term copper growth projects in Argentina totaling approximately 1 million tons, which represents roughly double the company’s current copper production.
Glencore currently trades at 5.6x FY26 EBITDA, one standard deviation above its five-year average of 4.9x, with more than half of the company’s FY26 EBITDA expected to come from copper and zinc mining, according to Bernstein’s analysis.
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