Glencore Could Beat Its New Marketing Unit Forecast

Dow Jones10-02

1004 GMT - Glencore could beat its new marketing unit forecast this year given the current environment, RBC analyst Ben Davis writes. He cites volatility, supply chain disruption and refining margins. The miner and commodity trader raised its guidance for marketing adjusted EBIT this year to over $5 billion compared with previous guidance of around $4.9 billion. It also raised its longer-term guidance for the metric to between $2.8 billion and $4.2 billion from $2.3 billion to $3.5 billion. RBC estimates 2026 marketing EBIT of $5.4 billion compared with consensus of $5.18 billion. Davis adds that the more important driver for the stock is the multiple attached to a trading business. RBC has an outperform rating on the stock and 660 pence target price. Shares are up 1.7% at 554.50 pence, and 38% higher over the year-to-date.

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