Berenberg raises target price on Anglo American

Berenberg said Anglo American had outperformed on "a difficult day in the markets" amid Russia/Ukraine tensions on outgoing chief executive Mark Cutifani's last set of results before he hands over the reins to Duncan Wanblad.

While the German bank said the results themselves were "a positive surprise" to the market-driven by a dividend beat at $4.19 per share, versus consensus at $3.65, and better net debt than expected thanks to working capital, the earnings call and management roundtable also highlighted that Anglo was in "strong shape" to deliver on growth from its compelling portfolio of assets and has self-help options to improve divisions which have previously struggled.

"We update our model for the results, and make small tweaks to estimates (higher Minas-Rio – iron ore in Brazil – costs and lower depreciation, depletion and amortisation costs) which increases our 2023 estimates," said Berenberg.

"We remain 'buy'-rated, and lift our price target to 3,800.00p per share, through an increased enterprise value/earnings before interest, tax, depreciation and amortisation multiple to 6.4 times (from 5.8 times), reflecting production growth and existing operational upside not in our numbers."