Anglo American PLC 

Anglo American PLC (LSE: AAL) is a mining company which is listed under the FTSE 100 index with a portfolio of undeveloped resources, mining, and processing operations. Company's operations are segmented into Platinum Group Metals, Iron Ore, manganese, Copper, DeBeers, and Crop Nutrients.This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Investment Rationale – Sell at GBX 2,496.50

• Resistance near Current levels: AAL’s stock price crossed the Resistance (R2) stated in the previous report on 03 April 2024, and might witness some sell-off from the current levels. Considering the market conditions and the price action, it is prudent to exit the stock, as the prices might pull back from these levels.
• Expensive Valuation: The stock of AAL is currently offered at 1.7x on EV/ Sales based relative valuation (NTM) as compared to the industry (Basic Materials) median of 1.1x. Also, the stock is currently trading at 12.8x on Price/ Earnings based relative valuation as copared to the industry median of 10.2x.
• Offer of Purchase from BHP Group Ltd: The company announced it received an unsolicited, non-binding, and highly conditional combination proposal of purchase from BHP Group Ltd. The board of AAL is currently reviewing the offer.

Share Price Chart  

Conclusion

Based on the notional gains, macroeconomic challenges, and price action stance, a "SELL" recommendation on Anglo American PLC (LSE: AAL) has been given at the current market price of GBX 2,496.50 (as of 25 April 2024, 09:20 AM GMT+1).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 25 April 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.