NEW YORK (TheStreet) -- Shares of Vale SA (VALE) , the Brazil-based mining and metal company, are down 2.38% to $8.82 after Citigroup forecast double-digit declines in iron ore prices in 2015, according to CNBC.
The bank on Tuesday slashed its price forecasts for the metal to average $74 dollars per ton in the first quarter of next year, before moving down to $60 in the third quarter, CNBC reported, adding, Citigroup previously forecast $82 and $78, respectively.
"We expect renewed supply growth to once again drive the market lower in 2015, combined with further demand weakness," Citigroup analyst Ivan Szpakowski, said, noting that prices could briefly dip into the $50 range in the third quarter.
Must Read: Warren Buffett's 25 Favorite Stocks
Separately, 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."