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Glencore share price: Barclays remains ‘overweight’ on miner

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Barclays continues to see Glencore (LON:GLEN) as an ‘overweight,’ arguing that markets are undervaluing the blue-chip miner, Citywire reports. The comments come after the company posted its full-year results earlier this year, saying that it had seen its ‘strongest on record’ performance in 2017, having benefitted from a recovery in resource prices.

Glencore’s share price surged in London in the previous session, surging 3.99 percent to 358.75p, outperforming the broader UK market rally, with the benchmark FTSE 100 index jumping 2.35 percent to close at 7,199.50 points. The group’s shares have added more than 12 percent to their value over the past year, as compared with a 1.8-percent dip in the Footsie.

Barclays ‘overweight’ on Glencore

Barclays reiterated its ‘overweight’ rating on Glencore yesterday, with a price target of 450p on the stock.

“With the mining sector under pressure from macro concerns, we see a variety of catalysts driving earnings momentum for Glencore in the near term that are differentiated from peers,” the broker’s analyst Ian Rossouw commented, as quoted by Citywire. “Conditions look ripe for the marketing business to deliver at or above the top of its long-term guidance range over the next few years, which is not reflected in consensus expectations.”

The analyst further pointed out that the miner was trading at a 37-percent price/earnings discount to the mining peers stripping out the marketing business ‘which seems difficult to justify’.

Other analysts on blue-chip miner

Citigroup meanwhile reiterated its ‘buy’ stance on Glencore today, without specifying a price target on the shares, while Royal Bank of Canada upgraded the miner to a ‘top pick’ yesterday, lowering its valuation on the stock from 470p to 460p. According to MarketBeat, the miner currently has a consensus ‘buy’ rating and an average price target of 424.39p.

As of 07:58 BST, Friday, 06 April, Glencore Xstrata PLC share price is 358.75p.

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