Credit Suisse downgraded its price target for Glencore PLC (LSE:GLEN) from £6.75 to £6.25 following 2022’s results, which were broadly in line with expectations.
The bank cited a 12% drop in FY23 EBITDA due to lower coal prices.
Despite the downgrade, Credit Suisse maintains its "buy" rating, preferring Glencore's cash returns, copper optionality, and ESG improvement over others in the sector.
Its marketing division has started the year strong, and the company assumes $3 billion in its illustrative spot scenario, up from $2.7 billion in December 2022. However, the thermal coal headwinds remain a concern, with the price of NEWC6000 down significantly due to a warm European winter, Credit Suisse said.
In a separate note, Deutsche Bank recommended also recommended buying shares in Glencore shares as it repeated its £5.75 price target.
The shares closed the day down around 0.8% at 504p.