Please find below updated AspectHuntley's recommendation for BHP as at 18 Dec 09.
Huntley's Recommendation: BHP Billiton Limited
Recommendation: Buy
Key from BHP's perspective are higher copper and iron ore price forecasts. Long term iron ore prices rise 26% to US$50/tonne and copper prices 25% to US$2.50/lb. BHP leverage pips RIO marginally given its lower aluminium exposure - for which we left prices unchanged - and its coking coal exposure which RIO lacks. We raised the long term coking coal price by 20% to US$120/tonne. Iron ore, copper and coking coal are three leading ingredients for developing world growth via urbanisation led by China. Our valuation and earnings forecasts for BHP increase substantially.
Business Impact: We increase our BHP valuation 17% to $50.80ps and upgrade our recommendation from Accumulate to Buy. Our FY10 and FY11 earnings forecasts increase 25% and 35% to $2.47ps and $3.06ps respectively. Our preference remains for the diversified resource majors for metals and bulks exposure. We think BHP remains the clear winner from a business quality perspective, but RIO outshines from a valuation perspective. At a price of $70.80ps, RIO trades at a 30% discount to valuation versus 19% for BHP at $41.05ps.
E*TRADE Broker consensus estimates are 2 strong buy, 1 moderate buy and 2 hold.
Brokers:
> Austock Securities Ltd
> E.L.& C.Baillieu Stockbroking
> Intersuisse Ltd
> Morningstar Australasia
> Ord Minnett
- Forums
- ASX - By Stock
- BHP
- rbs australia - $50.37
rbs australia - $50.37 , page-3
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add BHP (ASX) to my watchlist
|
|||||
Last
$39.73 |
Change
-0.280(0.70%) |
Mkt cap ! $201.4B |
Open | High | Low | Value | Volume |
$39.90 | $40.05 | $39.61 | $245.1M | 6.156M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 3989 | $39.71 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$39.75 | 8637 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1359 | 42.000 |
4 | 20542 | 41.710 |
8 | 3048 | 41.670 |
6 | 2109 | 41.250 |
2 | 643 | 41.000 |
Price($) | Vol. | No. |
---|---|---|
35.760 | 300 | 1 |
37.750 | 4014 | 4 |
38.050 | 2815 | 1 |
38.500 | 232 | 6 |
38.610 | 4908 | 5 |
Last trade - 16.10pm 19/08/2024 (20 minute delay) ? |
BHP (ASX) Chart |