Vale (NYSE:VALE) a "Top Pick" of Barclays (NYSE:BCS)

Barclays (NYSE:BCS) believes the political risks surrounding Vale S.A. (NYSE:VALE) are exaggerated, and have them as a "Top Pick" and maintain an "Overweight" rating on them.

Barclays said, "Well positioned to benefit from the super cycle, political risk perception overblown: Vale's investment case combines strong earnings momentum, a high-return organic growth platform, low cost/long reserve life asset base and attractive valuation. While political risks seem to be rising, we expect strong fundamentals and growth opportunities to remain the main value drivers. Vale trades on an attractive 2011 EV/EBITDA multiple of 5.1x versus its normalized multiple of 7x."

Vale, which is a diversified mining and metals company, closed Wednesday at $32.84, gaining $1.16, or 3.66 percent. Barclays raised their price target on them from $42 to $46.