{
}
A significant portion of mid- and small-cap oil and gas stocks in the US, about one-third, are currently trading below their book values, the highest level since the pandemic. This presents a prime opportunity for value investors, as energy stocks have underperformed, losing roughly 14% since early April amid concerns over global trade tensions and increased OPEC production. Investors like Cole Smead see potential in these undervalued stocks, anticipating a rebound to at least their book value.
UBS has downgraded Alcoa Corp to Neutral from Buy, citing a weak outlook for alumina and a stock valuation that no longer appears compelling after a recent rebound. Analysts express concerns over softening demand due to trade war uncertainties and predict that Alcoa's San Ciprián operations will continue to face significant financial challenges. Despite a medium-term positive outlook for aluminium prices, the near-term risks and cash flow issues at the refinery raise doubts about the company's recovery.
Gold prices recently fell to $3120 after reaching an all-time high of $3500, driven by reduced investor demand for safe-haven assets due to easing U.S.-China trade tensions and improving economic indicators. The medium-term outlook remains bearish, with potential declines toward $3000, while short-term resistance is noted at $3200 and $3220, with a possible rise to $3325 if these levels are surpassed.
The West Texas Intermediate (WTI) oil price faced pressure following initial optimism over a tariff agreement between the USA and China, which is set to last for 90 days, leaving future uncertainty. Recent US inflation data showed a slight decline, with producer prices falling unexpectedly, raising hopes for potential interest rate cuts by the Federal Reserve.
UBS has downgraded Coronado Global Resources Inc. from Buy to Neutral, lowering the price target from AUD0.31 to AUD0.19 due to a less favorable coal market outlook. The firm anticipates margin pressures will hinder long-term growth, necessitating additional funding and resulting in reduced earnings per share forecasts for 2025 and 2026.
Gold prices are experiencing a countermovement after a recent setback to around $3,100, driven by easing tensions in the US-China trade dispute, which has prompted profit-taking among investors. US producer prices fell unexpectedly, indicating reduced price pressure, while consumer confidence data from the University of Michigan is anticipated to influence market dynamics further. The $3,200 mark remains a critical resistance level to watch.
UBS has downgraded Coronado Global Resources Inc's stock rating from Buy to Neutral and reduced the price target from AUD 0.31 to AUD 0.19. This decision follows a reassessment of the company's financial outlook, influenced by a less favorable coal market and anticipated margin pressures, leading to lower earnings projections for 2025 and 2026. Additionally, the firm suggests that Coronado may require further funding to support its operations.
UBS analyst Lachlan Shaw has downgraded Coronado Global Resources Inc from Buy to Neutral, lowering the target price from AUD 0.31 to AUD 0.19. This decision follows a less favorable outlook for the coal market and a reassessment of Coronado's financial forecasts, indicating potential margin pressures and the need for additional financing.
UBS has downgraded Alcoa (AA) from Buy to Neutral, maintaining a price target of $31 due to expectations of prolonged depressed alumina prices, despite a positive medium-term outlook for aluminum. Analysts forecast an average target price of $34.06, indicating a potential upside, while the company's recent financial results show strong earnings and a solid cash position. Alcoa's joint venture and debt offering highlight its strategic moves, although the impact of U.S. tariffs remains a concern.
UBS has highlighted two natural gas stocks as promising investments, emphasizing the sector's resilience amid low oil prices. EQT Corporation, a major player in the Appalachian region, has expanded its portfolio through recent acquisitions and reported strong financial results for Q1 2025, with revenues up 25% year-over-year. The firm’s strategic focus on natural gas positions it favorably against the backdrop of ongoing oil market volatility.
Commodities
SubCategory
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
energy stocks trading below book value attract value investors
18:46 15.05.2025
ubs downgrades alcoa stock amid weak alumina outlook and demand concerns
17:45 15.05.2025
gold prices fluctuate as investor sentiment shifts towards riskier assets
16:56 15.05.2025
oil price faces uncertainty despite us china trade agreement and weak inflation
16:13 15.05.2025
ubs downgrades coronado stock rating and lowers price target to aud 0.19
15:40 15.05.2025
Gold price rebounds amid easing US China trade tensions and economic data
15:04 15.05.2025
ubs downgrades coronado share rating and lowers price target to aud 0.19
14:56 15.05.2025
ubs downgrades coronado share valuation and lowers target price to 0.19 aud
14:56 15.05.2025
Alcoa downgraded by UBS amid alumina price concerns and market outlook
12:24 15.05.2025
ubs recommends two natural gas stocks for strong investment potential
12:14 15.05.2025
Trending
Subcategory
Corporate News
Industry Trends
Fintech Startups
Venture Capital Investments
Startups & Entrepreneurship
Emerging Startups
Funding Rounds & Investments
AI Innovations
Cryptocurrency Trends
Economic Indicators
Retail and Consumer Goods
AI Applications
Global Trade Developments
Banking Regulations
Supply Chain Management
Stock Market Updates
Crypto Adoption and Integration
IPOs & SPACs
Private Equity Deals
Financial Scams and Security
Countries:
Companies:
Microsoft Corporation Corp.
Google LLC
Uber Technologies Inc.
NIO Inc.
Amazon.com Inc.
Apple Inc.
Honda Motor Co. Ltd.
Toyota Motor Corporation
The Goldman Sachs Group, Inc.
VOLKSWAGEN AG
Delivery Hero SE
PayPal Holdings Inc.
Alphabet Inc.
Bank of China Limited (Inc. in China)
VanEck Vietnam ETF
Legal & General Group Plc
iShares Silver Trust
Ather Energy Ltd.
TVS Motor Company Ltd.
Itcons E-Solutions Ltd.
Currencies:
United States Dollar
Euro
Indian Rupee
Japanese Yen
Chinese Yuan
South Korean Won
Saudi Riyal
Turkish Lira
British Pound Sterling
Malaysian Ringgit
Filipino Peso
Offshore Chinese Yuan
People: