Deutsche Bank Capital maintains Anglo American PLC(AAL:LSE) with a Hold rating and keeps the target price at GBX 3500

STA Research
by: STA Research

Deutsche Bank Capital maintains Anglo American PLC with a Hold rating and keeps the target price at GBX 3500 on the company’s stock.

Berenberg Capital Markets maintains the Buy rating on Anglo American PLC and lowers the target price to GBX 3200 from GBX 3300.

Based on the Anglo American PLC stock forecasts from 6 analysts, the average analyst target price for Anglo American PLC is GBX 3,390.63 over the next 12 months. Anglo American PLC’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Anglo American PLC is Slightly Bullish , which is based on 8 positive signals and 6 negative signals. At the last closing, Anglo American PLC’s stock price was GBX 2,627.50Anglo American PLC’s stock price has changed by +3.14% over the past week, -22.13% over the past month and -9.83% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

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