Citi says Glencore is a crowded trade but for 'all the right reasons'
Glencore
468.60p
16:40 25/04/24
Analysts at Citi reiterated their 'buy' recommendation (Target price: 700.0p) for shares of Glencore despite the fact that consensus longs often go wrong.
FTSE 100
8,078.86
17:14 25/04/24
FTSE 350
4,434.34
17:09 25/04/24
FTSE All-Share
4,387.94
16:49 25/04/24
Mining
10,403.74
17:09 25/04/24
Despite increasingly being a preferred holding in the mining space for investors, in their opinion that was so for all the right reasons: the 'ESG redemption' narrative, "massive" earnings upside from coal prices and a strong environment for the company's marketing business and cash returns.
Indeed, on bottom up 'puts and takes' on earnings before interest, taxes, depreciation and amortisation and free-cash-flow suggested 20%/28% upside for 2022 in relation to the consensus and even more in 2023, they said.
They also cited the potential for potential cash returns of $20bn.