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Credit Suisse 23/11/2009 3 Neutral $45.00 12.4%
The Credit Suisse analysts have responded to rumours of BHP making another takeover bid for Rio ((RIO)) by suggesting they can't see it happening. A 30% premium would prove very earnings dilutive and significantly crimp return on equity.

The iron ore JV captures most of what benefits BHP would actually gain by snatching Rio, they suggest, and if that gets knocked back by the regulators then there's no way a full takeover would be passed.

Macquarie 20/11/2009 1 Outperform $44.00 9.9%
The broker expects some cuts to output at the group's Spence copper mine in Chile given current industrial action but this doesn't impact on its valuation or price target for the stock.

Scope for upside from bulk commodity price negotiations sees the broker retain its Outperform rating.

Citi 20/11/2009 1 Buy, Medium Risk $45.00 12.4%
The broker notes Rio Tinto ((RIO)) has pushed past its target price, with BHP Billiton not far behind. The question is: are the stocks, or even the whole sector, now stretched and is there further upside ?

With Citi seeing upside risk to iron ore and aluminium, valuation accretion from restarting stalled growth projects and the potential for BHP to come back after Rio if the iron ore JV stumbles, the answer is: Yes. Citi still sees plenty of further upside risk, particularly in Rio.

Buy, forecasts and target unchanged.

JP Morgan 20/11/2009 5 Underweight $27.71 - 30.8%
The broker expects the Pilbara iron ore JV with Rio Tinto ((RIO)) will create value for both companies, adding as much as 3.1% to its year end net present value for BHP.

Despite this the broker retains its Underweight rating on the stock at current levels.

UBS 18/11/2009 1 Buy $45.00 12.4%
UBS has lifted its oil price forecasts for the period to 2013, mainly due to a weaker USD.

The broker’s 2010 forecast now stands at US$75/bbl and US$80/bbl for 2011-13.

This sees 2010-12 earnings forecasts rise by 2-3%.

UBS still prefers Rio Tinto ((RIO)) over BHP, due to greater iron ore leverage, as well as what the analysts see as potential for a turn around in RIO’s aluminium business.

Deutsche Bank 18/11/2009 3 Hold $40.00 - 0.1%
The broker has upgraded its long-term copper price from US$1.75 to US$2.00/lb due to declining project grades and increasing costs. This sees valuations increase across the board for the Australian copper companies under the broker's coverage.

BHP's price target increases to $40.00 (from $39.00).