Liberum is no longer bearish on Glencore (LON:GLEN), having moved its rating on the stock to a ‘hold’. The move came after the commodities giant updated investors on its half-year performance earlier this month, posting a rise in earnings, while cautioning that broader market conditions remained volatile.
Glencore’s share price have fallen into the red in today’s session, having given up 0.75 percent to 302.55p as of 14:40 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.40 percent lower at 302.55 points. The group’s shares have lost just under 12 percent of their value over the past year, as compared with about a 1.8-percent gain in the Footsie.
Liberum no longer bearish on Glencore
Liberum lifted its rating on Glencore from ‘sell’ to ‘hold’ today. Proactive Investors reports that the analysts have been swayed by the 24-percent fall in the value of the business, with the market ‘repricing the risk’ associated with the commodities giant.
“Whilst sentiment could deteriorate further on trade war escalation and investigation developments, it is divorced from the reality of strong commodity demand fundamentals in China,” the broker’s Ben Davis pointed out, adding that he would turn a ‘buyer’ on Glencore stock if the copper price dipped below $2.50 per pound. Proactive Investors notes that while this might sound counter-intuitive, the belief is a subdued price environment might persuade the big miners to shelve hugely expensive new projects.
Other analysts on commodities giant
Credit Suisse and JPMorgan Chase & Co, which see Glencore as a ‘buy,’ both set price targets on the shares this week, of 480p and 520p, respectively. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 422.24p.