Anglo American PLC (LSE:AAL) has been hit with a downgrade by broker Jefferies, which reckons the shares are too high given a likely fall in future in both the iron and met coal price.
The mining giant has good organic growth and should benefit from a potential recovery in Chinese demand as the year progresses, sid the US broker, but with two of its core commodities close to peaking 'the valuation is not enough to justify a buy rating as the risk/reward trade-off is now balanced'.
"Commodity prices have been a tailwind for Anglo and other miners so far this year, although we continue to be concerned about downside risk to iron ore and met coal and Anglo's exposure to these commodities might be a headwind over the next three months".
Hold, from buy, is the new rating with a target price of 3,300p.