June 26, 2022
Citi lowers the target price of Vail shares traded in the United States, but recommends buying |  Companies

Citi lowers the target price of Vail shares traded in the United States, but recommends buying | Companies

Citi has reduced the target price of stock receipts (ADRs) traded on the US Stock Exchange by mining company Vail from the previous US $ 20 to US $ 16. The new target price represents a potential increase of 24.6% compared to a recently recorded quote in New York. Recommendation purchased.

City says Covid-19 has created “unprecedented operational challenges” and that Vail is less active with its peers in achieving its production and cost targets across business units.

However, analysts Alexander Hawking and Stephen Wescott say the company “has some of the best quality nickel and iron ore assets in the world, making money in any situation.”

Analysts have cut production estimates for next year from 340 million tonnes to 328 million tonnes.. The bank points out that Vail should complete more iron ore exports this year than it did in 2019 when the Brumadinho dam broke.

Operating costs were raised by about $ 5 per tonne. This year’s Ebitda forecast is down 5% to $ 31 billion, while forecasts for 2022 are $ 22 billion.

(This article was originally published on Valor PRO, Valor Econômico’s Real Time Information and News Service)

Iron ore; Valley – Photo: Getty Images