Zacks Investment Research upgraded shares of Vale S.A. (VALE) from UNDERPERFORM to NEUTRAL on June 27, 2012, with a target price of $20.00.
We are upgrading our recommendation on Vale from Underperform to Neutral. We are optimistic on demand upside for metals and minerals based on industrial development worldwide. Vale's focus on operational efficiency and mining development holds future prospects. Its planned strategy of diversification across segments and volume growth of bulk material are anticipated to complement the company's organic growth pipeline. However, rising energy prices, currency fluctuations and huge mining taxes raise concern for miners, including Vale. Besides, mining disruptions due to natural disaster and political hindrances continue to impede growth.
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