Jefferies Upgrades BHP Billiton to Buy (BBL) (BHP)
- Wall Street dips as telecoms slump; AmEx surges
- Microsoft (MSFT) Tops Q1 EPS by 8c
- AMD (AMD) Posts Q3 Operating EPS of 3c; Sees Q4 Revenue Down Sequentially
- AT&T (T) Said to Discuss Idea of Takeover in Time Warner (TWX) Meetings
- After-Hours Stock Movers 10/20: (CERC) (ALKS) (PFPT) (MSFT) Higher; (SKX) (RRGB) (AMD) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(Updated - August 23, 2016 9:24 AM EDT)
Jefferies upgraded BHP Billiton (NYSE: BBL) from Hold to Buy with a price target of $33. Analyst Christopher LaFemina highlighted fundamental improvements in mining and company-specific factors.
"We had been cautious on the miners due to weak demand, ongoing supply growth, stretched balance sheets, and a lack of FCF for most mining companies. However, demand has stabilized, supply is declining in most cases, balance sheets have strengthened due to FCF and asset sales, and valuations are inexpensive. Fundamentals have clearly improved. For some miners (BHP and FMG in particular), company-specific factors are helping as well," said LaFemina.
"We upgrade BHP ('18 EV/EBITDA of 5.0x, FCF yield of 9.5%) from Hold to Buy on valuation, commodity exposure (iron ore lump and met coal), and better than expected free cash flow growth potential," added the analsyt.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Genuine Parts (GPC) to $95 Following 3Q Report
- eBay (EBAY) Turnaround on Track, Buy the Dip - Susquehanna
- Wedbush Cuts Price Target on eBay (EBAY) Following 3Q Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Upgrades
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!