BHP: Jefferies upgrades stock

(CercleFinance.com) - Jefferies has upgraded its rating on BHP shares to "buy" (from "hold"), while raising its target price for them to 3,100p (from 2,750p), in a report on the mining sector, in which it has increased its forecasts for iron ore and coal prices.


While it expected the slowdown in demand to lead to a period of lower commodity prices, the broker believes it sees a policy shift in China, which was needed to trigger a gradual recovery in local demand.

"While macro risks are clearly elevated and mining shares should be volatile, the sector is undervalued and poised to outperform as China recovers," Jefferies adds.


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