Private bank Berenberg’s analysts downgraded Anglo American’s stock to Sell from hold, alongside a notable price target cut from £3,000 to £2,000.
Anglo American’s shares fell 1.7% in London trading on Thursday.
The downgrade comes in the wake of Anglo American's decision on May 29 to reject further extension requests for the put up or shut up (PUSU) deadline, following three unsuccessful takeover attempts by BHP (BHP).
“Consequently, BHP stepped away from its bid and Anglo survives to fight another day,” analysts at Berenberg said. “However, Anglo now needs to execute its new strategy flawlessly, in our view.”
“We struggle to see how Anglo’s new strategy can deliver value comparable to the final BHP bid. The failure of Anglo shares to rally towards the final bid price reflects the market’s concern that it will not deliver this value, we think,” they added.