Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Jefferies expects solid recovery at Anglo American
(Sharecast News) - Anglo American investors just need a little more patience, according to analysts at Jefferies who reiterated their 'buy' rating on the mining company ahead of what it sees as an inevitable recovery in the share price. The broker claimed that negatives are mostly priced into the stock and that consensus expectations "seem too negative", and said that the company "is at a turning point now".
Jefferies said it expects "significant relative outperformance for Anglo's shares over the course of this year and beyond", as it kept a 2,500p target price, indicating around 40% upside from current prices.
Anglo's share price tumbled around 40% over the course of 2023 after a tough year, as the miner cut production guidance due to operating issues and had to deal with weakness in the diamond and platinum group metals (PGM) markets. Free cash flow was also negative and the ongoing heavy investment into the Woodsmith polyhalite fertiliser mine is "unhelpful", Jefferies said.
Nevertheless, the broker said: "The path to recovery for Anglo after a difficult 2023 includes meeting recently rebased guidance, pursuing portfolio strategies to unlock value, and benefiting from: 1) increased exposure to copper (nearly 40% of Anglo's NPV), 2) cyclical upside in diamonds and PGMs, and 3) ongoing strength in iron ore and met coal prices.
"The Anglo recovery will take time to fully play out. But it is coming, in our view."
Jefferies added that, even if Anglo is unable to improve operationally over the coming year, "then we see a risk that an activist gets involved or another miner approaches it for a merger". The broker said: "Anglo has a portfolio of world-class assets with operational upside. The value of these assets is not fully reflected in its current share price, based on our analysis."
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.