Wednesday, November 17, 2010

Vale (NYSE:VALE) Earnings, Production Lowered

Canaccord Genuity said they're reiterating their "Buy" rating on Vale SA (NYSE:VALE), even though they do see earnings falling by about 1 percent over the next couple of years, and iron ore production falling.

"We have reviewed our Vale valuation following recent capital spend and production guidance to incorporate Q3/10 financial forecasts and to reflect stronger iron ore spot prices than we had expected...Our new EPS estimates for 2011 and 2012 are $4.51 and $4.39, both down 1%. Our new EBITDA forecasts for 2011 and 2012 are US$35.4 billion and US$34.8 billion, both up 1%. Our new iron ore production forecasts are 311 Mt in 2011 and 332 Mt in 2012, down from prior estimates of 331 Mt and 350 Mt," said Canaccord.

Vale was trading at $31.79, gaining $0.28, or 0.89 percent at 11:43 AM EST. Canaccord has a price target of $37 on the miner.

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