Morgan Stanley upgrades Alcoa and 2 other mining stocks that offer 'deep value' to investors

  • 📰 CNBC
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 72%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Despite lingering uncertainty in the metals and mining sector, Morgan Stanley thinks there are some strong value opportunities in the space.

Analyst Carlos De Alba upgraded shares of Alcoa , Teck and Nexa to overweight from equal weight, noting he is turning "selectively more positive" on certain mining stocks where they see opportunities for deep value or self-help stories. Alcoa has a strong cash cost curve and capacity cuts to smelting, which is a term use to describe the process of extracting metal from its ore, De Alba said.

"We are only selectively upgrading mining stocks, those where we see deep value and/or self-help stories amid persisting macro/China recovery uncertainties," the note said. De Alba emphasized caution on the sector due to macro uncertainties in China that kept upgrades conservative despite what they see as attractive valuations, strong cash flow generation, capital expenditure declines and low leverage.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines