Citi reiterates 'buy' on shares of Glencore

Glencore will be able to deliver on the promises made during its latest Investors´ Day, analysts at Citi believed, with possible asset sales holding the greatest potential to move markets.

The commodities trader said all of the measures announced then were steps in the right direction.

Those steps included: 1. an increase in the size of its capital preservation programme (from $10.2bn to $13.1bn); 2. reduced end-2016 target for debt (from the low 20´s to between $18-19bn); 3. strong 2016 marketing EBIT guidance; 4. sequentially lower unit cost guidance for 2016.

One of the other main targets unveiled was a targeted reduction of $1bn in the company´s working capital.

"While investors are awaiting another streaming deal (indicated by end-2015) and asset divestments, we remain confident in Glencore´s ability to achieve the remaining measures during 2016," analysts Heath R.Jansen and Jatinder Goel said in a research report sent to clients.

The broker maintained its 'buy' recommendation and 160p target on the stock.