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.
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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.