Investec retains hold stance on Anglo American

24th Apr 2014 10:09

Broker Investec retained its 'hold' recommendation on Anglo American even though some of the miner's first quarter production figures were below its expectations. Iron ore was in line, copper a "little light" compared to expectations, diamonds also light due to production problems but with full year guidance unchanged, coking coal performed well and was 30% above expecations and platinum underperformed following strike action.Overall, although not all key production figures met expectations, analyst Albert Minassian was impressed with the "significant" year-on-year growth.Investec values Anglo on a combination of NPV, price-earnings (p/e) multiples and dividend and free cash flow yields.Currently it has full year 2014 earnings forecast at 159.7p, rising to 230.2 for 2015, for normalised p/e ratios of 16.3 improving to 11.3.OH