Ambrian Capital was unsurprised that Anglo American's subsidiary Anglo Platinum announced a rights issue today, so keeps its 'hold' rating on the miner.
Anglo American will subscribe in full to its entitlement to the cash call, costing it $1.3bn, a decision described by the broker as effectively a swap of debt for equity.
More broadly, Ambrian says it favours Anglo's fellow miners Rio Tinto and BHP Billiton due to their greater exposure to iron ore. It thinks Anglo American's exposure to platinum is overvalued.
Ambrian has a 2,900p target price on Anglo shares.
Stockbroker tips from ShareCast
Broker snap: Ambrian unsurprised by Anglo Plats cash call
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Market latest
FTSE 100 | FTSE 250 | All Share
| FTSE 100 | 5,901.07 |  |
+1.81% |
| FTSE 250 | 11,235.15 | |
+1.34% |
| FTSE All Share | 3,047.42 | |
+1.73% |
| Dow Jones | 12,862.23 | |
+1.23% |
| NASDAQ | 2,905.66 | |
+1.61% |
| Xetra DAX | 6,766.67 | |
+1.67% |
| Paris CAC 40 | 3,427.92 | |
+1.52% |
| Nikkei 225 | 8,831.93 |  |
-0.51% |
| Hang Seng | 20,756.98 | |
+0.08% |
Hang Seng disclaimer l Prices delayed by at least 15 minutes
FTSE 100
| Admiral Group | 1038.00 | |
+7.90% |
| Man Group | 136.70 | |
+7.81% |
| Smiths Group Plc | 1017.00 | |
+5.94% |
| Lloyds Banking Group plc | 34.39 | |
+5.07% |
| ITV plc | 79.35 | |
+4.75% |
| Petrofac | 1474.00 | |
-1.40% |
| BG Group plc | 1425.00 | |
-0.49% |
| Polymetal International plc | 1165.00 | |
-0.43% |
| Randgold Resources | 7400.00 | |
-0.27% |
| Royal Dutch Shell Plc | 2261.00 | |
-0.18% |
| Lloyds Banking Group plc | 309,113,680 |
| Royal Bank of Scotland | 130,453,278 |
| Vodafone Group Plc | 128,243,037 |
| Barclays plc | 59,662,740 |
| BT Group plc | 33,853,130 |
Articles on the economy and stock markets
Inflation falls at last
Wed 18 January 2012
With inflation finally falling, what does this mean for the economy and for investors? Ben Yearsley, Investment Manager discusses.
Where to invest in a recession
Tue 17 January 2012
It doesn't take an economist to see that the economic picture is fragile. But how bad are things likely to get, and what does it mean for investors? Ben Brettell, Economics Editor, examines the evidence.
Where to invest in 2012
Fri 13 January 2012
2012 starts where 2011 left off - with a huge degree of uncertainty for investors. Mark Dampier shares his thoughts on areas which could prosper this year.