Deutsche Bank has raised its price target for Anglo American PLC (LSE:AAL) from 2,900p to 3,000p, maintaining a 'buy' rating following the miner’s latest financial results.
The bank sees further potential for Anglo’s shares to rise as the company continues to simplify its operations and improve efficiency.
Anglo reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of $8.5 billion, in line with expectations, as strong iron ore and coal results helped offset weaker performance in platinum group metals.
However, the standout figure was cash flow, with strong working capital management bringing net debt down to $10.6 billion—$1 billion lower than consensus forecasts, Deutsche said.
The company also took a $2.9 billion write-down on the carrying value of diamond subsidiary De Beers.
A newly announced joint venture with Codelco to develop copper mines in Chile is seen as a positive step, expected to reduce capital expenditure and boost copper output from 2030.
In afternoon trading, the stock was up 11p at 2,440.