Wells Fargo Lifts PT on Vale S.A. (VALE) to $12 From $11, Sets an Equal Weight Rating

Vale S.A. (NYSE:VALE) is one of the best undervalued stocks to buy under $50. On November 4, Wells Fargo lifted its price target on Vale S.A. (NYSE:VALE) to $12 from $11 and set an Equal Weight rating on the shares.

The firm cited the improving performance in the Base Metals segment, especially supported by precious metal byproduct credits. While it is adopting a cautious stance on the conditions of the iron ore market, Wells Fargo believes that Vale S.A. (NYSE:VALE) has maintained a lid on costs.

Vale S.A. (NYSE:VALE) reported its fiscal Q3 results on October 30, reporting a robust sales performance across all its business segments. Copper, iron ore, and nickel sales rose 20%, 5%, and 6% year-over-year, respectively, attributed to solid operational performance.

Pro forma EBITDA for the quarter reached $4.4 billion, reflecting a 17% year-over-year and 28% quarter-over-quarter growth. This positive trend was attributed to cost efficiencies, higher volumes, and higher iron ore, copper, and by-products prices. In addition, net operating revenue rose 9% year-over-year and 18% quarter-over-quarter.

Vale S.A. (NYSE:VALE) lowered its 2025 cost guidance because of the favorable outlook for byproduct revenues and lower-than-expected costs so far in the year. The company now expects nickle all-in cost to be between $13,000 and $14,000 per ton and copper all-in cost to be between $1,000 and $1,500 per ton. The continued cost improvement translates to an EBITDA growth of around $900 million compared to the company’s expectations at the start of the year.

Vale S.A. (NYSE:VALE) produces and exports 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.