Barclays expects Glencore PLC (LSE:GLEN) shares to rise in a “turning point” for the coal industry amid sustained supply chain upheaval.
The broker updated its price target for Glencore to 680p, from yesterday’s closing price of 476p in the wakes of fresh sanctions on Russian energy and expected weaning off of its supply chains this year.
“We see the Russian invasion of Ukraine as a major turning point for European energy policy and coal markets: The invasion has highlighted a lack of energy security and diversity of energy policy in Europe,” Barclays said.
“We believe a potential policy shift could have major implications for gas, power and coal prices, with Europe likely to increase coal consumption over the coming years to avoid needing gas supplies from Russia.”
Barclays projects Glencore to record earnings per share of £1.24 this year and £1.06 next year.
Glencore shares are up more than 10% since Russia invaded Ukraine as investors flock to non-Russian linked energy companies, with Glencore announcing last week it had no exposure to the county.
Shares were down 2.35% to 465p by 11:11 GMT this morning.