UPDATE: Bank of America Upgrades BHP Billiton to Buy Due to Positive Upside
In a report published on Wednesday analysts from Bank of America upgraded its rating on BHP Billiton (NYSE: BHP) from Underperform to Buy and raised the price target to $80.00.
In the report, analyst Jason Fairclough stated that, "Our PO represents around 1.2x our DCF derived NPV, within previous trading range. We think that a DY of 4% is compelling to income investors and puts something of a floor under the share price and implies asymmetric risk to the upside. We think that new CEO, Andrew Mckenzie's message is well received by investors and trust is gradually returning. We had concerns about Greenfield spend in Potash but now believe the group is focussed on value and would only proceed with Jansen on non-vanilla derisked basis e.g. JV, stake sell down, etc. We see the wider space as underowned and see upside risk on copper prices."
BHP Billiton is down 1.43 percent on the day and currently trades at $57.02
Latest Ratings for BHP
|Oct 2014||Credit Suisse||Upgrades||Underperform||Neutral|
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