The recent red-hot coal price rise may not be sustainable but they are fueling higher commodity prices, Jefferies said as it raised commodity price forecasts and announced a string of upgrades.
“Coal price inflation is a game-changer,” the bank asserted as it re-rated South32 (S32), CNX Coal Reserves (CNXC) and Glencore (GLEN) from Hold to Buy; and raised Anglo American (AAD) and Vedanta (VED) from Underperform to hold. It maintained the Buy rating on BHP Billiton.
Coal and oil stocks have surged in the days following Donald Trump’s victory in the presidential race. During his campaign, the Republican promised to revive the domestic coal industry, besides threatening to end...
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