NEW YORK (TheStreet) -- Shares of Vale (VALE) are slipping, down 1.12% to $7.93 in early market trading Tuesday, after analysts at J.P. Morgan Chase lowered its iron ore outlook through 2017 this morning.
JPMorgan now expects iron ore to be $69 per metric ton in 2017, down 16% from its prior forecast.
The firm also lowered its 2016 forecast to $65 per metric ton, down 23% from its prior estimate.
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Analysts at the firm now forecast $67 per metric ton of iron ore next year in 2015, 24% lower than its previous forecast.
"The only way the oversupply can be averted is if the low-cost producers cut back on their growth targets," added analysts at JPMorgan.
Vale is a Brazil-based metals and mining company operating in four segments including bulk material, basic metals, fertilizers, and logistic services.
Separately, TheStreet Ratings team rates VALE SA as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALE SA (VALE) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."