© Reuters.
By Scott Kanowsky
Investing.com — Shares in Glencore PLC (LON:) moved higher on Wednesday after analysts at AllianceBernstein raised their rating of the mining giant, citing an increase in coal prices fuelled by dwindling European gas supplies stemming from the outbreak of the war in Ukraine.
In a note to clients, the analysts said they have upgraded their rating of the Baar, Switzerland-based company to Outperform from Market Perform. They also increased their target price for the stock to £7.70 per share, up from the prior level of £5.60.
“In the present, an unprecedented gas shortage in Europe has moved coal from reliable baseload to the marginal and most valuable electron,” they wrote.
“As long as this situation persists (several years in our current view), thermal coal prices will remain elevated, Glencore is best positioned in our coverage to take advantage of this.”
They flagged that a potential peace deal between Russia and Ukraine presents the biggest risk to this prediction, along with a possible surge in Chinese coal supply.
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