Jefferies Upgrades BHP Billiton to Buy (BBL) (BHP)
- Donald Trump Sworn in as 45th U.S. President
- U.S. stocks pare gains after Trump's inaugural speech
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Herbalife (HLF) Says SEC Requested Documents on Anti-Corruption Compliance in China; Reviewed with DoJ
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
- IBM (IBM): Closer Look Shows The - Jefferies
- Drexel Hamilton Reiterates Buy on IBM (IBM) Following 4Q Report
- Union Pacific (UNP) PT Raised to $120 at Aegis Capital Following Solid 4Q
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!