Glencore initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Glencore with a Buy rating and 530 GBp price target. The analyst says Glencore and Rio Tinto present the strongest balance sheets, coupled with strong cash flows with the most valuation upside in the Europe metals and mining group. The firm expects Glencore to continue to harvest cash from its industrial and marketing business to fund its “attractive” brownfield copper growth portfolio that offers one of the lowest-capex profiles among the majors.