Vale S.A. (VALE) Upgraded to Outperform Amid Simandou Project Disruption Impact

Vale S.A. (NYSE:VALE) ranks among the best stocks under $25 to buy now. On December 10, RBC Capital raised Vale S.A. (NYSE:VALE) from Sector Perform to Outperform, lifting its price target to $14.20 from $11. The increase comes after RBC increased its 2026-2029 iron ore price estimates by 13% due to a projected disruption in the Simandou project schedule, establishing Vale as a “clear winner” in the industry.

RBC predicts Vale’s dividend yield for fiscal year 2026 to be around 9%, more than doubling the 4% yield projected by the company’s rivals.

On December 2, Vale S.A. (NYSE:VALE) also stated that its subsidiary Vale Base Metals had inked an agreement with Glencore Canada to cooperatively evaluate a potential brownfield copper development project in their neighboring assets in the Sudbury Basin.

According to Vale S.A. (NYSE:VALE), the project involves the expanding of Glencore’s current mine shaft and the creation of new drifts to give access to surrounding copper deposits. Notably, the project is estimated to generate 880 kt of copper over 21 years.

Vale S.A. (NYSE:VALE) produces and exports copper, pellets, iron ore, manganese, and iron alloys. Its operations are divided into the Energy Transition Materials, Iron Solutions, and Coal and Others segments.

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Disclosure: None. This article is originally published at Insider Monkey.