Glencore Shares Attractively Priced with Reasons to be Positive

Dow Jones09-25

1045 GMT - Glencore shares are attractively priced after a roughly 15% fall from recent highs, UBS analyst Myles Allsop writes as he upgrades the stock to buy from neutral. The target price rises to 6.50 pounds from 6.20 pounds. Shares in the commodity giant have fallen due to macroeconomic risks, coal prices and governance concerns surrounding Radiant World, he says. The risk/reward profile is now more positive, he says, citing a strong performance in Glencore's marketing division and exposure to rising commodity prices. Shares could also be set for a rerating soon as Glencore's copper expansion plans become more visible, he says. Overall, cash flow and returns over the remainder of the year are set to be strong as commodity prices rise and Glencore disposes of some assets, he adds. Shares rise 1.5% to 5.57 pounds.

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