After record high, market still sees gain for Vale

Vale shares have hit record after record in recent weeks and are now consolidating at levels above R$100, practically doubling in value since 2020. Asset managers and analysts say the Brazilian mining company still operates at a discount of approximately 30% in relation to global peers, which opens room for further gains. This gap should not be closed overnight and there is a certain skepticism about the size of the appreciation cycle of iron ore. In addition, the company is still struggling to extricate itself from the tragedies in Mariana and Brumadinho. On the other hand, demand for iron ore is high because the global economy is recovering.

Source: Valor international