All So Bullish on BHP Billiton (BHP)

The Australian resources sector is definitely in boom mode with BHP riding the crest of the resources boom. RIO is also riding the crest of success. UBS has upgraded their recommendation on higher commodity price assumptions. And so UBS has increased their price target from $32 to $38 with a Buy 2 recommendation. UBS believes that "as the market becomes comfortable with sustainable high commodity prices, earnings upgrades will follow allowing BHP to continue to outperform the Australian market." Macquarie Research Equites (MRE) also maintains their outperform rating on BHP on the basis of their high quality exposure to a range of commodities. MRE also believes that "BHP Billiton's longer term growth profile remains largely intact." MRE also notes that "continues to trade on relatively attractive PE multiples of 11-13x for the next 3 years and, when combined with the potential for additional upward commodity price driven earnings revisions, further outperformance seems likely."

[Update:] MRE has an Outperform recommendation and 12-month price target of $33.57 for BHP Billiton.