Glencore Upgraded on Sterling Weakness

The last few years have been good for Glencore with benign cost pressures, low capital expenditure and rising commodity prices

Mathew Hodge 11 December, 2018 | 12:29PM

commodities basic materials natural resources

Equity analysts are upgrading their fair value estimate on no-moat rated Glencore (GLEN) to 250p from 240p previously. The primary driver is depreciation of the GBP/USD exchange rate from 1.32 to 1.27.

We also incorporate updated guidance for production and costs across its mining business and softer short-term guidance for marketing. On a net basis, those changes are a wash.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Glencore PLC174.10 GBX-3.60

About Author

Mathew Hodge  is an equity analyst for Morningstar

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