Mining giant Anglo American (LON:AAL) will be reporting final results on Friday (Feb 14) and heavyweight broker JP Morgan Cazenove reckons the group has recently benefitted from a clutch of factors.
These are its focus on long term turnaround story, short covering and a weakening South African Rand.
"While we are believers in this dynamic, we are concerned that near-term operational and political risks are not adequately reflected in the valuation," noted however analyst Fraser Jamieson in a recent note.
The broker keeps its 'underweight' rating on the shares and said it expects the numbers to be fairly "solid relative to expectations."
It forecasts operating profit of US$6,372 mln against consensus of US $6,220 mln, a flat dividend year-on-year (YoY) of 85 cents a share and net debt of US$9,768mln.
Jamieson added that the broker saw potential areas of interest in the statement to include recovery plans at Los Bronces (copper) and Sishen (iron ore), plus an update on Minas Rio.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.