Broker snap: Vedanta investment set to pay off

23rd Oct 2009 13:04

Brokers are queuing up to jump on the mining bandwagon, with Deutsche Bank making positive noises about Anglo American.Meanwhile, Morgan Stanley has nudged its price target for Vedanta Resources up to 3168p from 3112p, and reiterated its 'buy' recommendation on the stock.The bank thinks Vedanta has been out of step with other mining companies, 'pushing through with its programmes aggressively in the second half of 2008 and the first half of 2009, contributing to its towering growth profile, when other balance-sheet constrained companies were pulling back.'Morgan Stanley thinks the investment programme will pay off in the next two years so shareholders will not have to 'wait too long before the impact of the growth flows through to earnings.'