NEW YORK (TheStreet) -- Shares of Vale SA (VALE) nearly hit a 52-week low of $12.23 in morning trading Wednesday after Goldman Sachs (GS) said 2014 would mark the end of what it called the "Iron Age."
Iron ore prices have fallen sharply this year thanks in part to increased supply that exceeded demand. But Goldman Sachs does not think prices will recover.
The group said 2014 "is the inflection point where new production capacity finally catches up with demand growth, and profit margins begin their reversion to the historical mean," the group wrote in a report Wednesday entitled "The End of the Iron Age."
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Goldman Sachs trimmed its 2016 forecast for iron ore to $79 a metric ton from $82 and reduced its 2017 guidance to $78 from $85. It maintained its $80 outlook for 2015.
The stock was down 1.44% to $12.34 at 10:27 a.m.
TheStreet Ratings team rates VALE SA as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALE SA (VALE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."