Goldman Sachs is maintaining its Buy rating this morning on Companhia Vale do Rio Doce (NYSE: RIO), but the firm is adding the stock to its Americas Conviction Buy List. Shares are down over 13% over the past month, worse than -2% for S&P 500. Goldman also notes that shares look fairly inexpensive. In fact, it sees an 88% upside opportunity to its 12 month target of $58 per ADR. The company settled 2008 pellet prices at an 87% year over year increase, well above Goldman Sachs projected 45% increase. The firm also believe that iron ore consumption will be less affected than other metals due to the industrialization and urbanization in BRIC countries.
Jon C. Ogg
March 24, 2008