Itaú BBA Bank reiterates to the market its optimism on Vale do Rio Doce stock (VALE3). Thus, the points supporting the bank's argument include macroeconomic and company-specific factors. Namely, the outlook for commodity prices is positive, driven by the Chinese stimulus measures. From this perspective, the Chinese civil construction sector, which is a major consumer of steel, is the main factor benefiting the company.
In addition, it is directly bullish on Vale as the supply chain is still not fully recovered and supplies are reduced. In this sense, the bank says that by the end of 2022, the company's shares should reach R$ 100, an increase of more than 17%.
What is the company's position in this situation?
According to Banco Itaú BBA's team of experts, the Board's plan is promising. That is, the organization and goals set by Vale contribute to this positive scenario for the future.
“The executive shared his vision for planning, such as a value-over-volume strategy, price dynamics and stock buybacks”Highlights of the Itaú BBA team
In addition, cash generation should increase due to higher iron ore prices. Therefore, the Itau BBA team is still excited about the paper on this company.
“We expect the majority to reward shareholders through dividends and buybacks”Itaú BBA says
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