Deutsche Bank has lowered its price target for Glencore PLC (LSE:GLEN) from 480p to 450p, citing weak coal prices, underwhelming 2024 results, and market uncertainty over the company’s strategic direction.
Despite this, it maintains a 'buy' rating, seeing deep value at current levels.
Glencore’s struggles have been driven by falling coal prices, which Deutsche notes have put around 20% of the global seaborne thermal coal market in loss-making territory. However, the bank believes prices are nearing a floor.
To regain investor confidence, Deutsche suggests a sharper focus on operational performance, working capital, and shareholder returns. Potential longer-term catalysts include a US listing or mergers and acquisitions, but the outlook remains tied to global economic and policy shifts.
The shares were flat at 317.5p.