Fortescue share price rebounds 3% today

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price

The Fortescue Metals Group Limited (ASX: FMG) share price is rebounding on Tuesday.

In afternoon trade, the mining giant’s shares are up 3% to $17.52.

Why is the Fortescue share price rising today?

Investors appear to have been picking up Fortescue shares today on the belief that they were oversold on Monday.

The Fortescue share price started the week with a sizeable decline after seaborne iron ore prices plunged in response to sharp falls in the futures markets.

With things looking a little more stable for iron ore prices today, Fortescue, BHP Group Ltd (ASX: BHP), and Rio Tinto Limited (ASX: RIO) shares are rebounding.

Are its shares good value?

Despite the recent weakness in the Fortescue share price, brokers aren’t recommending investors jump in.

In fact, none of the major brokers currently have a buy rating on its shares.

Though, it is worth noting that Macquarie’s neutral rating and $20.00 price target does imply meaningful upside of 14% from current levels.

Elsewhere, the bears at Goldman Sachs have a sell rating and lowly $13.50 price target on the company’s shares. Its analysts see far more value in BHP and Rio Tinto and have buy ratings on both.

The post Fortescue share price rebounds 3% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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