Anglo To Exit Diamonds and Platinum in Bid To Fend Off BHP
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2024
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Source: Bloomberg
- Anglo American Restructuring: Anglo American plans to exit diamond, platinum, and coal mining to focus on copper and iron ore, aiming to fend off a takeover from BHP.
- Strategic Changes: The company will demerge or sell its De Beers diamond business, separate the thermal coal unit, and slow spending on a fertilizer mine in England.
- Response to Takeover Approach: Anglo has rejected two takeover proposals from BHP, worth £34 billion, stating they undervalue the company and are unworkable.
- Focus on Key Metals: Anglo will concentrate on copper mines and iron ore, its main earners, while considering selling or shuttering its nickel business in Brazil.
- Simplification of Business: The move to shrink and simplify the business was accelerated by BHP's approach, with plans to exit Amplats, coking coal mines, and reduce spending on the Woodsmith fertilizer project.
Analyst Views on AAL
Wall Street analysts forecast AAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAL is 17.44 USD with a low forecast of 10.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 15.020
Low
10.00
Averages
17.44
High
21.00
Current: 15.020
Low
10.00
Averages
17.44
High
21.00
About AAL
American Airlines Group Inc. is a holding company. Its primary business activity is the operation of a major network air carrier, providing scheduled air transportation for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C. and partner gateways, including in London, Doha, Madrid, Seattle/Tacoma, Sydney and Tokyo, among others. Together with its regional airline subsidiaries and third-party regional carriers operating as American Eagle. Its cargo division provides a wide range of freight and mail services, with facilities and interline connections available across the globe. It operates approximately 977 mainline aircraft supported by its regional airline subsidiaries and third-party regional carriers, which together operate an additional 585 regional aircraft. Its subsidiaries include American Airlines, Inc., Envoy Aviation Group Inc., PSA Airlines, Inc. and Piedmont Airlines, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
