Glencore Share Price Forecast: Expert Insights on Future Performance

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Aerial shot of an active mining site with machinery in Banten, Indonesia.
Credit: pexels.com, Aerial shot of an active mining site with machinery in Banten, Indonesia.

Glencore's share price has been on a rollercoaster ride in recent years, influenced by factors such as commodity prices, production levels, and global economic trends.

The company's diversified portfolio of commodities, including copper, zinc, and coal, makes it vulnerable to fluctuations in global demand and supply.

Glencore's operations are spread across 50 countries, giving it a significant presence in the global commodities market.

Glencore's share price has historically been sensitive to changes in commodity prices, with a strong correlation between the two.

Glencore Share Price Forecast

Glencore's share price is expected to soar to 300p in the following weeks if commodity prices continue to respond positively to vaccinations. This prediction is based on the bullish backdrop of potentially higher oil and copper prices.

A 10 per cent gain for copper would result in a 6 per cent gain for Glencore shares if the price reaches $8,800. This is a short-term target indicated by a chart, where the price of copper is expected to move to the $4.1565 per pound level.

Credit: youtube.com, Glencore Share Price Forecast - GLEN Share Price Predictions

The price of Brent crude has been on a strong uptrend since the market was buoyed by the reported efficacy of the Pfizer vaccine. The price per barrel gained nearly 40 per cent since then.

A 3.4 per cent potential upside for oil could boost the price of Glencore shares by at least 2 per cent in the short term. This would possibly push the price to 280p per share if the target of $58 is achieved.

Here's a summary of the potential gains for Glencore shares based on commodity prices:

Glencore's share price has not had significant price volatility in the past 3 months compared to the UK market.

Company Overview

Glencore is a multinational company that operates in various regions, including the Americas, Europe, Asia, Africa, and Oceania. They engage in the production, refinement, processing, storage, transport, and marketing of metals and minerals, as well as energy products.

Their operations are extensive, with a presence in many parts of the world. However, it's worth noting that the company's valuation is currently trading at 30.5% below its estimated fair value.

Here's a snapshot of Glencore's fundamental analysis, which includes its valuation score of 6/6, indicating that it's trading at a discount to its estimated fair value.

Glen Stock Overview

Credit: youtube.com, glencore investor analysis- A short overview

Glen, also known as Rio Tinto Group, engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in various regions around the world.

The company's valuation is 30.5% below its estimated fair value.

Glen's Snowflake Score for Valuation is 6/6, indicating a strong valuation.

Here's a breakdown of Glen's Snowflake Score:

Glen's diversified interests in trading and mining multiple commodities, including gold, silver, zinc, oil, and copper, increase the complexity of predicting its performance.

The price of Glen shares has shown a strong recovery, nearing the 300p level, and is correlated with the prices of oil, zinc, and copper.

The correlation between the price of Glen shares and the prices of oil, zinc, and copper is strong, with oil topping at 0.75, copper at 0.9, and zinc at 0.81.

The price of oil has been on a strong uptrend since the market was buoyed by the reported efficacy of the Pfizer vaccine, with a potential upside of 3.4% to reach the $58 level.

Credit: youtube.com, Should you hold Glencore stock (LON-GLEN)?

The price of copper has also been advancing strongly, driven by higher demand from China, and is forecasted to rise to as much as $9,500 during 2021.

A short-term target for copper can be set at $8,800, which would result in a 10% gain for copper and a potential 6% gain for Glen shares.

Glencore Plc Competitors

Glencore Plc competes with other major mining companies, including BHP Group and Rio Tinto Group. Both of these companies have significant operations in the global mining industry.

Vale SA is another major competitor of Glencore Plc, with a strong presence in the iron ore and coal markets. Vale SA has faced challenges in the past, including a dam collapse that had significant environmental and financial impacts.

Anglo American Plc is also a notable competitor of Glencore Plc, with a diverse portfolio of mining operations around the world. Anglo American Plc has made significant investments in renewable energy and other sustainable initiatives.

Fortescue Metals Group Ltd is a smaller but still significant competitor of Glencore Plc, with a focus on iron ore mining in Australia. Fortescue Metals Group Ltd has been expanding its operations in recent years, including the development of new mines and infrastructure.

Frequently Asked Questions

Is Glencore a good stock to buy?

Based on analyst consensus, Glencore is considered a Strong Buy with a high share price target of 510.00p, suggesting potential long-term growth. However, it's essential to do your own research and consider multiple factors before making an investment decision.

What is the fair value of Glencore?

As of December 26, 2024, the fair value of Glencore PLC is -34.87 GBP. This suggests a significant potential upside of -109.8% compared to the current market price.

Kristen Bruen

Senior Assigning Editor

Kristen Bruen is a seasoned Assigning Editor with a keen eye for compelling stories. With a background in journalism, she has honed her skills in assigning and editing articles that captivate and inform readers. Her areas of expertise include cryptocurrency exchanges, where she has a deep understanding of the rapidly evolving market and its complex nuances.

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