Vox Markets Logo

Berenberg slashes target price on Anglo American

11:00, 11th December 2023

Anglo American plc (AAL) Follow | AAL

(Sharecast News) - Analysts at Berenberg slashed their target price on multinational mining group Anglo American from 2,000.0p to 1,500.0p on Monday, stating its recent update left "a lot to answer".
Berenberg updated its model on Anglo American following its 2023 investor update, which it released on 8 December, with the stock closing down roughly 20%, as it "materially" underperformed peers due to the magnitude of volume cuts.

The German bank noted that while it has seen an improvement in sentiment regarding Anglo American in recent weeks and months, it still does not think that the time was right to step into the equity story.

Berenberg said this was mainly due to the severity of the cuts to estimates, alongside its expectation that lower volumes and still sticky costs will impact free cash flow generation and fail to support a deleveraging story.

"While some may argue that the stock is cheap after a 20% sell-off, our revised estimates bring our net asset value down materially and our price target to 1,500.0p per share. We remain 'hold'-rated. We also flag potential impairment risk with the 2023 results given the guidance cuts. Anglo is trading on 1.67x NAV and 5.2x 2024E EBITDA," said Berenberg.





Reporting by Iain Gilbert at Sharecast.com


Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

Recent Articles