Vale's (VALE) shareholder returns and potential from its base metals division are key catalysts, but the company's shares seem "fairly priced" after a recent re-rating, RBC Capital Markets said in a note Thursday.

Vale shares had slightly outperformed diversified and base metal peers in RBC's coverage as its "strong operational performance has been further enhanced by inflows into Brazilian equities," the note said.

RBC noted, however, that even though Vale's shares have fallen 14% year-to-date after the events in the Middle East, the company still re-rated ahead of closest peers BHP (BHP) and Rio Tinto (RIO) in key metrics.

The investment firm said its base case commodity price forecast estimates only "short-term disruptions to energy markets" but if the conflict in the Middle East drags on for longer, Vale "would fare worse than [BHP and Rio Tinto] given its relatively higher cost, pellet premium risks and emerging market exposure."

RBC downgraded Vale's rating to sector perform from outperform and increased the company's price target to $15.50 per ADR from $14.50 per ADR, citing "higher copper/nickel price forecasts."

Price: 15.01, Change: -0.33, Percent Change: -2.18