Deutsche Bank continues to buy Glencore, even though it acknowledges that Glencore may be the most valuable of the recent energy/coal windfalls.
The story is still liked by analysts at the German Bank for the following reasons:
“Sector leading cash generation in 2023/24 and shareholder returns in 2023/24 even though coal prices are moderate.
“Glencore is also one of the largest producers of base metals in the world, and this aspect of the business remains undervalued.”
“The marketing business is a distinct differentiator and provides strong cash generation throughout the cycle. Global trade frictions should keep earnings high, and the potential divestment Agri could evolve as an intriguing catalyst over the next 12+ month.”
Deutsche believes that you should buy with a target of 575p instead of 560p.
Today’s shares were at 536.3p, down 1%