Glencore is still worth buying, according to analysts at Deutsche bank, even though concerns over its liquidity position allied to lower energy prices have knocked its shares 25% recently.
Deutsche Bank concedes Glencore does use large lines of credit to run its trading operations but adds any funding concerns are misplaced.
“Market uncertainty and macro risks are both likely to remain high in the near term, but we think the shares offer attractive value”, it adds.
On a base case mid-cycle valuation, the target price of 600p is 50% above the current market level.