Ferrexpo PLC (LON:FXPO) has been downgraded to ‘underweight’ from ‘neutral’ by analysts at JP Morgan following a recent rally in the share price as the bank highlighted a risk of lower iron ore price in the second half of the year and into 2021.
In a note on Wednesday, the investment bank also raised its target price to 150p from 130p to reflect the share price rise, however the risk of declines in prices of the commodity justified the lower rating.
READ: Ferrexpo books iron output boost for the first half of 2016
Meanwhile, JP Morgan said it had upped fellow LSE-listed miner Glencore PLC (LON:GLEN) to 200p from 180p, however, it reiterated its ‘underweight’ rating on the stock due to a perception of “higher operating and regulatory risks” for the firm. Anglo American PLC (LON:AAL) on the other hand was lowered to 2,600p from 2,650p and retained at ‘overweight’ due to “weakness in coal, diamonds and supply risks”.
Targets were also increased for Rio Tinto PLC (LON:RIO) to 5,440p from 5,140p and BHP Group PLC (LON:BHP) to 1,950p from 1,830p, rated at ‘neutral’ and ‘overweight’ respectively on the back of what JP Morgan said was “higher iron ore and base metal prices”.
Shares in Ferrexpo were up 2.5% at 186.4p in late-morning trading.