DJ MARKET TALK: BHP Started At Sell, Rio Tinto At Buy By Daiwa...

DJ MARKET TALK: BHP Started At Sell, Rio Tinto At Buy By Daiwa

0352 GMT [Dow Jones] STOCK CALL: Daiwa initiates coverage of BHP Billiton (BHP.AU) with
a Sell rating and Rio Tinto (RIO.AU) with a Buy. "We believe BHP is in a stronger
position than Rio, both operationally and financially, to weather the current challenging
business environment," Daiwa says. Says BHP's balanced product mix, exposure to
petroleum and low gearing contrast with Rio's exposure to aluminum and gearing.
"Nevertheless, the fall in Rio's share price following BHP's decision to
terminate a takeover of its Anglo-Australian peer has been, we believe, overdone,"
Daiwa says. Six-month target price for BHP set at A$26.64, Rio at A$72.85. BHP trading up
0.5% at A$31.10, Rio down 0.8% at A$39.99. (APW)

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