- Glencore
- 03 May 2024 17:21:24
Source: Sharecast
"Glencore's 2023 results acted as a clearing event and removed guidance risks from the investment case," the broker said.
Shares fell sharply on the release of the results on 21 February, which showed that full-year adjusted EBITDA dropped to $17.10bn in 2023 from $34.06bn in 2022. However, since reaching a 52-week low of 365.31p on 26 February, the stock has jumped 14%.
RBC highlighted Glencore's double-digit free cash flow generation potential, with cash generated by operating activities of $15.1bn in 2023, "which coupled with its copper exposure and thermal coal bottoming out will likely assist in outperformance".
The broker added: "Our target price edges down from 520p to 500p as we tighten the numbers, and we reiterate our 'outperform' recommendation."
Glencore's shares were up nearly 1% at 420.95p by 0908 GMT.