latest ratings

UBS 02/09/2009 1 Upgrade to Buy from Neutral $42.50 13.8%
On the back of recent commodity price upgrades, the broker has lifted its FY09 earnings forecasts by 31% and FY10 by 15%, with base metal upgrades supporting two thirds of this upgrade.

This has led UBS to lift its recommendation on the stock to Buy from Neutral and its target by $4.50 to $42.50.

However, Rio Tinto ((RIO)) is preferred as it is trading at a 10% discount, UBS adds.

Credit Suisse 14/08/2009 3 Neutral $42.00 12.8%
In the broker's view the group's solid profit result confirms its status as the safe haven exposure, with respect to economic recovery.

Post the result and on the back of changes to its commodity price expectations, the broker has adjusted its earnings forecasts by around 15% in coming years, but there is no change to its $42.00 price target or Neutral rating.

Deutsche Bank 14/08/2009 3 Hold $36.04 - 1.7%
Having digested the numbers, the broker notes that a failure to pass on excess cash to shareholders in the form of increased dividends implies BHP has plans for that cash. A "tier one" acquisition is not viable, so the broker believes BHP will look to organic growth.

The broker believes the bulk of the good FY09 result came in a late rush. It suspects BHP will now look to ramp-up projects in the next six months. The broker has thus reduced FY10 forecast earnings by 2.8% and increased FY11 by 2%.

BA-Merrill Lynch 14/08/2009 3 Neutral $40.00 8.4%
The FY09 results were ahead of the broker's expectations, who notes that in raising the dividend, BHP really stands out against the backdrop of its global mining peers.

However, Merrills notes the performance was largely on the back of better than anticipated realised prices, but given management's cautious statements, the broker doesn't see the trend continuing.

As such, 2010-11 EPS forecasts are cut by 8% and 7%, while the Neutral call and target price are maintained.

JP Morgan 13/08/2009 3 Neutral $31.46 - 16.5%
Target $31.46 (was $30.38). Underlying earnings of US$10.7bn for the full year was a strong result in the broker's view as it had forecast a result of US$10.1bn.

Post the result the broker retains its view the company is the best placed in its sector to benefit from any economic recovery but it continues to see this as priced in at current levels, meaning no change to its Neutral rating despite an increase in price target (which remains well below the current share price).

RBS Australia 13/08/2009 3 Hold $36.93 0.8%
Target $36.93 (was $36.43). Underlying earnings for FY09 of US$10.7bn was better than the broker had expected and in its view its forecasts were at the top of the market.

Post the result the broker makes only minor changes to its forecasts and retains its Hold rating on the stock.

Citi 13/08/2009 1 Buy, Medium Risk $43.00
18 Aug 09
14.8%
It was a "solid result" says Citi, who notes that net profit and earnings were both ahead of it and consensus. However, the flat dividend was somewhat of a minor disappointment.

Still, the broker sees about 30% upside risk to its FY10 estimates at spot metal prices and a rollover for bulk prices. This view, coupled with strong expected production growth, sees the broker maintain its Buy rating and target price.

Macquarie 23/07/2009 1 Outperform $40.98
11 Aug 09
10.6%
The broker is not expecting to change its forecasts following the BHP production report, which it says hit the mark on expected volume increases following the Chinese push.

In terms of valuation, the broker is not so much interested in multiples as it is in the latent production capacity in BHP, which it uses to justify its Outperform rating.

Aspect Huntley 11/06/2009 1 Buy - -
Update database.