RE: RE: SP21 Aug 2022 16:54
I am bullish on Glencore (OTCPK:GLCNF) as I believe the company is undervalued relative to fundamentals. While I acknowledge a slowing commodity cycle, I strongly believe that the company can deliver shareholder value also at much lower commodity prices. For reference, the company currently trades at x5.5 P/E and x0.34 EV/Sales. In this article, I value GLCNF shares based on a residual earnings model and calculate a fair implied target price of $10.98/share. Thus, my analysis indicates material upside of almost 100%.