The company's weak Q3 results reported in Nov 1 and Vale Day guidance saw Vale S.A. (NYSE:VALE) shares sell off and consensus earnings fall, but the rally in iron ore prices has since provided some support.

Analysts at RBC Capital increased their long-term iron ore price forecasts to $75/t from $65/t. This and a weaker BRL assumption helps to increase their NAV estimate by 39% to $20.49/share. The analysts believe Brazil risks, its EM link, and concentration in iron ore will continue to see shares discounted, however, the stock should be more resilient into future iron ore downturns. The analysts upgraded the company to sector perform from underperform, raising their price target to $17 from $12.50.