- Anglo American
- 24 January 2025 09:24:29
Source: Sharecast
"The marked shift in the investment case of AAL last year from operational recovery to delivering on its proposed restructuring has led to a circa 30% share price outperformance since the announcement in May 2024," the bank said.
"The current share price reflects a reasonable probability for bulk of its portfolio optimisation measure coming to fruition, and the corresponding re-rating of the remainco business."
Citi said the sum of the parts valuation at 2,700p a share now implies limited upside, with valuations at 6.5x estimated 2025 EBITDA at a premium to Anglo’s global diversified mining peer group.
"With limited upside from current levels, our rating on the stock moves to neutral, with revised price target," it said.
Citi said a potential rally in commodity prices or renewed M&A interest from the global miners are key upside risks to the stock.