Shares of metals and mining company Vale look too cheap to ignore after a major de-rating, according to JPMorgan. Analyst Rodolfo Angele upgraded Vale to overweight from neutral, citing an inexpensive valuation after the more than 27% slump in shares year to date. Its valuation sits at 4.2 times 2024 enterprise value to EBITDA from a peak of 5.9 times. The stock also trades at a discount to peers, he said. VALE YTD mountain Vale shares in 2023 “Vale had a very challenging start to the year, marked by low volumes, operating challenges and high costs,” he wrote. “However, the coming quarters should look better.” Angele lifted his price target on U.S.-listed shares to $16 from $15, reflecting more than 21% upside from Thursday’s close. The stock added about 1% before the bell. Along with the discounted stock price, Angele sees an attractive short-term setup for volumes as operations return to the Torto dam. Steel overproduction in China also represents a potential catalyst for shares. Annualized production of the metal is already 2.5% above 2022 levels this year, and prices remain robust, he said. Angele views recent government growth targets as a sign that China is prioritizing economic growth, and unlikely to curb the metal as it did in previous years. “We believe that current iron ore prices are being supported by improved sentiment on China reopening and robust steel output,” Angele said. “We expect prices to average $100/t in 4Q23 and $98/t in 2024.” — CNBC’s Michael Bloom contributed reporting