Credit Suisse Reiterates a Sell Rating on Vale SA

In a report released yesterday, Ivano Westin from Credit Suisse reiterated a Sell rating on Vale SA (NYSE: VALE), with a price target of $4. The company’s shares opened today at $5.56.

Westin observed, “We believe the bulk of the USD3.2bn (including project finance and Mitsui’s contribution) should translate into Vale’s cash in the form of payment of outstanding intercompany loan as CLN should need to hold only a smaller portion of cash (such as for working capital purposes).”

According to, Westin is a 4-star analyst with an average return of 13.7% and a 66.7% success rate. Westin covers the Basic Materials sector, focusing on stocks such as Southern Copper, FRESNILLO PLC, and Buenaventura.

Vale SA has an analyst consensus of Moderate Sell, with a price target consensus of $4.

The company has a one year high of $6.26 and a one year low of $2.13. Currently, Vale SA has an average volume of 23.91M.

Vale SA engages in the production and export of iron ore, pellets, manganese, and iron alloys, which are raw materials needed for steelmaking. It operates through the following segments: Ferrous Minerals, Coal, Base Metals, Fertilizers and Others. The Ferrous Minerals segment includes the extraction of iron ore and the production of pellets, manganese ore, iron alloys, and coal, and logistics services. The Coal Segment comprises the extraction of coal and its logistic services. The Base Metals segment involves the production of non-ferrous minerals, which include nickel, copper, and aluminum. The Fertilizers segment is comprised of three major groups of nutrients: potassium, phosphate, and nitrogen. The Others segment encompasses joint ventures and affiliates of other businesses. The company was founded on June 1, 1942 and is headquartered in Rio de Janeiro, Brazil.