Anglo American PLC (LSE:AAL) shares ticked up on Friday morning after the miner was granted a ‘buy’ rating by Jefferies analysts.
Though there were still risks around its restructuring, which has seen Anglo sell off coal and platinum assets, Jefferies said a drop in the shares left good value.
“The company will be well positioned to benefit from a rising copper price and a resilient iron ore price after its restructuring is complete,” analysts said in a note.
“It should have a strong balance sheet and robust cash flow, enabling it to deliver large capital returns.”
Shares were down around 15% since the restructuring was unveiled in May, Jefferies pointed out, but progress since had “been very good”.
Anglo was upgraded from a ‘hold’ as a result, with Jefferies also lifting its share price target from 2,500p to 2,850p.
Shares climbed 2.6% to 2,452p on Friday.