BHP Billiton Plc’s (LON:BLT) mixed production report - which showed slightly better copper output, but weaker iron ore numbers - earned the mining group an upgrade from RBC Capital, albeit not enough to warrant anything more than a ‘sector perform’ rating.
RBC lifted BHP’s price target by 12.5% to 900p from 800p, compared to the current price of 937p.
In a note, analyst Tyler Broda said: “We continue to rate BHP as Sector Perform as stronger currencies and still breakeven price levels mitigate profitability outside of iron ore.
“Rolling forward our estimates provides an uptick in our rounded target from 800p to 900p per share.”
Al Stanton, RBC’s oil analyst, at the same time lifted the target for Tullow Oil (LON:TLW) to 290p from 260p (current price 239p) and repeated a ‘buy’ recommendation ahead of Thursday’s AGM.
He highlights that Tullow’s shares are starting to recover from a ten year low, and whilst there’s at least another quarter of weak oil prices the analyst reckons Tullow’s debt is manageable.
Stanton also notes that a solution to the current production disruption at the Jubilee field is expected to be revealed later this week - Tullow is insured against the problem, though RBC sees 2016 output at the company’s lowest level for six years.
Jefferies International expects Ted Baker Plc (LON:TED) to continue its outperformance versus its peers, and it upgraded the designer to ‘buy’ from ‘hold’.
Credit Suisse downgraded Antofagasta Plc’s (LON:ANTO) price target to 360p from 380p, but stuck with an ‘outperform’ rating.
JP Morgan cut its target for oil services firm John Wood Group Plc (LON:WG.) to 545p from 564p and repeated an ‘underperform’ rating.