Market Overview

UPDATE: Bank of America Upgrades BHP Billiton to Buy Due to Positive Upside

Related BHP
Buy And Hold Large-Caps Until Commodity Cycle Rebounds, BMO Capital Analysts Say
Freeport-McMoRan Slashes Dividend 84%, Shares Collapse
Iron Ore Miners Rio, BHP And Vale Race To The Bottom, Steel Prices Fall (Seeking Alpha)

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

Mar 2015CIBCUpgradesSector PerformOutperform
Mar 2015HSBCDowngradesOverweightNeutral
Feb 2015CitigroupDowngradesBuyNeutral

View More Analyst Ratings for BHP
View the Latest Analyst Ratings

Posted-In: Bank of America Jason FaircloughAnalyst Color Upgrades Analyst Ratings


Related Articles (BHP)

Around the Web, We're Loving...

Get Benzinga's Newsletters