Anglo American shares rise after Credit Suisse upgrade

13th Oct 2014 14:44

Anglo American's share price jumped on Monday after Credit Suisse upgraded its recommendation for the London-listed mining group from 'neutral' to 'outperform'.The Swiss bank said that its unchanged target price for the shares of 1,800p now represents 30% potential upside from current prices after a recent slump in the stock's value."The shares are down over 20% from the year-to-date peak and we believe the risk/reward is attractive once again," it said.While commodity prices have weakened markedly, Credit Suisse said its confidence in the company delivering on its targets for cost savings, spending reductions and divestments is still strong."By 2016/17 Anglo should be lower down the cost curve (asset sales, operational improvements), geared to later cycle commodities and, from a standing start, offers the best two- to three-year growth and cash flow trajectory from the large-cap miners," the bank said.The stock was up 4.5% at 1,385p by 14:56, leading the risers on the FTSE 100.