Reflecting a drop of over 15% in the past six months and more than 8% in the past month, Brazil-based global mining corporation Vale S.A. (VALE, Financial) is trading close to its 52-week low of $9.64. Monday's closing price for the stock, $9.66, as it emerge as one of the top value plays at this time. With 21 price targets averaging $14.08, analysts project significant potential for Vale, a 45.79% rise from current levels.
The low-end target of $10.00 shows little downside risk; the high-end aim of $18.00 predicts an 86.36% upside. Projecting a 30.26% increase, GuruFocus estimates a 12-month GF Value of $12.58. A key player in the worldwide mining industry, Vale specializes in the production of iron ore, nickel, and other minerals. With a consensus rating of 2.3, denoting a "Outperform," the company receives great analyst support.
With none advocating Underperform or Sell, 3 rank the stock as a Strong Buy, 13 as Outperform, and 7 as Hold from 23 brokerage recommendations. Value-oriented investors looking for exposure to the mining sector find Vale to be a possible prospect thanks to the mix of positive analyst ratings and reasonable valuation measures.
