bhp ready to surge

Doing some research, came across this eureka report written by Alan Kohler on the 9th of june.

"Commodity prices are set to stay “stronger for longer” and that means substantial stock upgrades are on the way for leading miners, especially BHP, says one of the market's most influential resource specialists, Rob Clifford, senior resources analyst at ABN-Amro.

Clifford says the ongoing re-rating of long-term commodity price forecasts means BHP could enjoy a potential 40% improvement in stock price while arch-rival Rio Tinto could improve by 20%.

In today's video interview, Clifford says the recent appointment of growth focused CEOs – Marius Kloppers at BHP and Tom Albanese at Rio – indicates the management teams at mining companies are more confident the mining industry is set for an extended period of buoyant stock prices. (Charlie Aitken details more than a dozen mining stocks he believes will benefit from upgrades in today's column, click here).

Clifford says most of the mining industry – including stockbrokers – “missed” the fact that commodity prices can remain at peak levels for longer than previously expected. Mining stocks are now expected to “catch up” with the reality of underlying commodity prices. "