Glencore remains a 'buy' for Deutsche Bank, though it concedes the best of the recent coal/energy windfall might be behind the mining titan.
Even so, analysts at the German bank like the story for three reasons:
“Sector leading cash generation and shareholder returns in 2023/24, even as coal prices moderate.
“Glencore is also the world's largest producer of base metals and this part of the business remains undervalued.
“The marketing business is a real differentiator, providing strong cash generation through the cycle; global trade frictions should keep earnings elevated and the potential divestment of the Agri unit could evolve as an interesting catalyst over the next 12+ months.”
Buy with a 575p target, moved up from 560p, is Deutsche’s view.
Shares were down 1% today at 536.3p.