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What Are Analysts’ Recommendations for BHP Billiton?

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Analysts’ recommendations

Among the analysts that track BHP Billiton (BHP) (BBL), 45% have given the company a “buy” recommendation, and 10% have given it a “sell” recommendation. For Rio Tinto (RIO), 41% of analysts are recommending a “buy” while 19% are recommending a “buy” for Vale (VALE). In comparison, Freeport-McMoRan (FCX) and Alcoa (AA) have 11% and 41% “buy” recommendations, respectively.

Freeport-McMoRan forms 3.6% of the SPDR S&P Metals and Mining ETF (XME).

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Changes in analyst ratings

Now let’s discuss some recent target prices and recommendations with respect to BHP. Bank of America upgraded BHP Billiton from “neutral” to “buy” on April 18, 2016.

Jefferies reiterated its “hold” recommendation on BHP stock on April 18, 2016. It has a target price of 800 pounds for the stock.

Morgan Stanley has set a target price of 950 pounds for BHP’s stock. It has an “overweight” rating on the stock.

JP Morgan (JPM) retained its “underweight” recommendation for BHP while raising the target price from 665 pounds to 780 pounds. JPMorgan analyst Lyndon Fagan said that “BHP’s 24-month rail maintenance program is likely to restrict volume growth.” He added, “As with the Rio quarterly, the implication is a tighter iron ore balance in 2017, which is positive for prices. We expect this will trigger consensus iron ore price and earnings upgrades over the coming months.”

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