10 Best Nickel Stocks to Invest in According to Analysts

2) Vale S.A. (NYSE:VALE)

Average Upside Potential: 47%

Vale S.A. (NYSE:VALE)  is engaged in producing and selling iron ore, iron ore pellets, nickel, and copper in Brazil and internationally.

Wall Street analysts opine that Vale S.A. (NYSE:VALE)’s Iron Solutions segment should fuel its long-term growth. In Q3 2024, Vale S.A. (NYSE:VALE) achieved its highest iron ore production since 2018 and has also increased its 2024 production guidance to the upper end of the 323 to 330 million tons range. Also, the company’s C1 cash costs in iron ore declined by 17% QoQ and 6% YoY.

Vale S.A. (NYSE:VALE) plans to accelerate the execution of its premium iron ore strategy, leveraging on its unique endowment. The company possesses one of the richest iron ore resources in the world, and it aims to structurally produce ~350 million tons of iron ore. Out of this, 80% – 90% will be high-quality products, such as BRBF, Carajás, and agglomerated products. This flexible portfolio should enable Vale S.A. (NYSE:VALE) to support its clients in their decarbonization journey.

Also, the company remains focused on driving its nickel business. GEM Co., a Chinese battery-metal producer, and Vale S.A. (NYSE:VALE)’s Indonesian unit signed an agreement to establish a $1.42 billion nickel plant in the Southeast Asian nation, highlighting the country’s drive to boost processing. Industry experts remain optimistic about this development as Indonesia makes up for over half of global nickel production. The country has been seeking overseas investment in its processing industry to tap the increasing demand for EV batteries.

Wall Street analysts have an average price target of $15.39 on the shares of Vale S.A. (NYSE:VALE).