Vale (VALE3) flirts with R$ 90 and supports the Ibovespa; Can the stock go higher?

The actions of mining and steel mills helped keep the Ibovespa on a high this Friday (9), with OK 🇧🇷VOUCH3) having gains of more than 3% and CSN Mineração 🇧🇷CMIN3), gives CSN 🇧🇷CSNA3), shooting 10%.

The good performance of the sector once again reflects the advance of the iron orewhich reached the highest level in almost four months on expectations that the China will announce new measures to support a real estate in severe crisis.

Futures advanced as much as 3% in Singapore on Friday, to $112.35 a tonne, extending the price recovery from a 45-month low at the end of October to almost 50%.

The continuation of the easing of severe restrictions on the Covid Zero it also feeds the optimism of the markets, which hope that the recovery of the economy will support the demand for the commodity.

Does VALE3 go up more?

Amid positive news coming from China, Vale’s shares rose 20% over the last month and are currently flirting with R$ 90.

Vale continues to be one of the recommendations in several series of Empiricus🇧🇷 Despite the more contained message in the Vale Dayespecially for production volume expectations, the company made its value generation strategy clearer through products with greater added value, says analyst Ruy Hungary.

In the evaluation of Empiricus, Vale is attractive because it has “very high quality” assets, is traded at low multiples and also has a dividend yield (dividend yield) high.

In the evaluation of BTG Pactualwhen pricing Vale, the market seems to consider unrealistic assumptions of iron ore prices at US$ 70/ton.

Leonardo Correa and Caio Greiner, analysts at the bank, believe that iron ore could reach US$ 120 a ton, pulling Vale’s shares up.

For the Inter Research, the still uncertain scenario in China still weighs on Vale, as it could compromise the mining company’s demand. The “neutral” recommendation was reinforced by the institution. The indicated target price is BRL 94 at the end of 2023.