Wall Street’s most bullish Vale S.A. (NYSE:VALE) analysts are predicting the share price to blow past $19 per share during the next 12 months. The current median share price forecast by them is $13.5, suggesting that the stock could increase 20.32% in that time frame. The average price target of $14.21 calls for a nearly 26.65% increase in the stock price.
Vale S.A. (VALE) trading activity significantly weakened as the volume at ready counter decreased to 39,646,644 shares versus 52,867,191 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 45,123,047 shares. The share price dropped -1.49% in recent trade and currently has a stock-market value of $58.54B. The shares finished at $11.22, after trading as low as $11.08 earlier in the session. It hit an intraday high Monday at $11.47. The stock is now 3.03% above against its bear-market low of $10.89 on February 08, 2019. It has retreated -43.76% since it’s 52-week high of $16.13 reached in October. Now the market price is down -6.09% on the year and down -14.94% YTD.
VALE’s 50 day simple moving average (SMA 50) price is $13.19 and its 200-day simple moving average (SMA 200) price is $13.78. The company’s stock currently has a total float of 5.22B shares. Its weekly volatility is hovering around 4.51% and felt 3.91% volatility in price over a month. On the upside, the share price will test short term resistance at around $11.43. On a downside, the stock is likely to find some support, which begins at $11.04. The failure to get near-term support could push it to $10.87.
It had seen a negative analyst call from Morgan Stanley, which downgraded the stock from Overweight to Equal-Weight on February 07. Analysts at Macquarie, shed their positive views on January 28 by lowering it fromOutperform to Neutral. The stock lost favor of Jefferies analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on January 28. HSBC Securities analysts came out with bearish views on January 28 when the call was made. They think the stock is now Hold compared to to their prior call for Buy.
When looking at valuations, Vale S.A. (VALE) has a pricey P/E of 13.9x as compared to industry average of 9.83x. Moreover, it trades for 6.32 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.32x price/book and 1.72x price/sales. Compared to others, Vale S.A. is in a different league with regards to profitability, having net margins of 10.8%. To put some perspective around this, the industry’s average net margin is 2.16%. VALE’s ROE is 8.9%, which is also considerably better than the industry’s ROE of 6.43%. It’s also very liquid in the near term, with a current ratio of 1.7. The stock has a debt/capital of 0.41.
Shares of Vale S.A. (VALE) have dropped -21.4% since the company’s last earnings report. Over the past 12 fiscal quarters, Vale S.A. (NYSE:VALE) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 3 quarters (25%), whereas at 0 occasion EPS met analyst expectations. VALE last reported earnings on October 24, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.27 per share, -99.17% change on the same period last year. That was worse than consensus for $0.4. Revenue for the recent quarter stood at $9.54 billion, up 5% on last year and above the $9.45 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $7.65 billion to $10.04 billion, which should be compared with $8.39 billion generated last year. EPS is seen in a range of $0.22 to $0.62, against the $0.32 reported a year ago.