Liberum continues to see BHP Billiton (LON:BLT) as a ‘sell,’ arguing that the relative rerating of the group’s shares is ‘unjustified,’ Citywire reports. The comments come ahead of the Anglo-Australian miner’s full-year results next week.
BHP Billiton’s share price has fallen into the red in today’s session, having given up 0.44 percent to 1,624.80p as of 10:30 BST. The shares are marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.08 percent lower at 7,550.26 points. The group’s shares have added just under a fifth to their value over the past year, as compared with about a two-percent gain in the Footsie.
Liberum sees BHP as ‘sell’
Liberum reaffirmed BHP Billiton as a ‘sell’ yesterday, with a price target of 1,300p on the shares, following this week’s selloff in miners.
Citywire quoted the broker’s analyst Richard Knights as commenting that even after Wednesday’s “momentous equities and base metal rout, where BHP closed down 5.2%, it has still been comfortably the best performing UK-listed major [miner] this year”. He explained that Anglo-Australian miner had “benefited from the strength of oil, the spin-off of its onshore assets and the illumination of strong economics and increased lump capacity from South Flank,” while cautioning that the stock had “re-rated too sharply versus its peer group into falling commodity prices over the past month”.
Knights noted that the Anglo-Australian miner had re-rated by 30 percent against Rio Tinto (LON:RIO) and 40 percent against Anglo American (LON:AAL) and “on an absolute basis it is also still clearly the outlier”.
Other analysts on group
Deutsche Bank reaffirmed BHP Billiton as a ‘buy’ today, without specifying a price target on the shares. According to MarketBeat, the Anglo-Australian miner currently has a consensus ‘hold’ rating and an average price target of 1,692.17p.