Glencore Price Target Trimmed, Analyst Bullish On Shares (GLEN)

Glencore shares (LON:GLEN) have been experiencing a tough week in the markets, trading down 5.78%, and making a retest of 300p support.

With sentiment turning bearish in recent days, Barclays' decision to lower its price target on the stock to 415p from 420p would not help at first glance, yet looking a little deeper and the cut is not as bearish as might seem.

The firm keep an “Overweight” rating on GLEN, with the price target itself at the revised level more than 35% higher than the latest close. 

Glencore's recent operational updates include plans to achieve $1 billion in cost savings by the end of 2026. This initiative, announced on July 30th, is a result of a comprehensive review of its industrial assets and aims to streamline operations and enhance technical focus.

While copper production for the first half of 2025 saw a 26% decrease due to lower ore grades, the company maintains its full-year production forecast, anticipating a strong recovery in the latter half of the year.

The company also announced a $1 billion share buyback program in July, following the merger between Bunge Global and Viterra. This merger resulted in Glencore receiving a 16.4% stake in the newly enlarged company, alongside $900 million in cash.

Glencore views its shares in the NYSE-listed Bunge as excess capital, prompting the move to repurchase its own stock.

Cost savings, a buyback program, and a dividend close to 2.5% gives holders something to cling to, and analyst consensus seems to be with the stock for the time being.  The sector is going through a challenging period, yet Glencore is well positioned to plough through.