BHP 2.78% $43.59 bhp group limited

rbs australia - $50.37 , page-3

  1. 116 Posts.
    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
 
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Last
$43.59
Change
1.180(2.78%)
Mkt cap ! $219.5B
Open High Low Value Volume
$42.68 $43.72 $42.58 $363.0M 8.389M

Buyers (Bids)

No. Vol. Price($)
1 12430 $43.59
 

Sellers (Offers)

Price($) Vol. No.
$43.60 29645 5
View Market Depth
Last trade - 16.10pm 19/03/2024 (20 minute delay) ?
Last
$43.59
  Change
1.180 ( 2.71 %)
Open High Low Volume
$42.74 $43.72 $42.66 905210
Last updated 16.10pm 19/03/2024 ?
BHP (ASX) Chart
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