Headquartered in London, Anglo American, Plc (AAUK) is a global leader in mining and natural resource sectors. The company has operations in Africa, Europe, South and North America, and Australia. It operates under the following business segments: coal, gold, platinum, base metals, diamonds, industrial minerals, ferrous metals and industries.

We are maintaining a Hold recommendation on Anglo American. The company is benefiting from strong demand for commodities around the globe and an increase in production. However, risks to global economic growth remain, and as inflation moderates, the need to hedge against it using commodity stocks is less attractive.

The stock is trading at 4.1x our 2008 EPS estimate but given the economic slowdown worldwide and our forecast of just 2% EPS growth for the next five years, we maintain our Hold recommendation. Our six-month target price is $10.00.