BHP Billition Stocks Update

Submitted by Craig Strzelecki on 26 May, 2007 - 19:14

BHP Billition Stocks have a Buy 2 broker call and a share price target of $36 from sharemarket analyst UBS. BHP has reported March quarterly production and as expected, production impacted by weather & outages. BHP Billiton's March quarterly production was slightly lower than in previous periods as weather and outages impacted production levels. The March quarter is typically the weakest due to weather but compared to the RIO report last week, there appeared to be less issues in terms of weather, grade, throughput and maintenance, and therefore the numbers were reasonable in the analyst's view. As a result of the March quarterly production numbers, they have lowered their FY07 and FY08 NPAT forecasts by 0.3% and 4.6% respectively to reflect inclusion of higher costs and pull back in some of the analyst's production expectations. BHP believes that the global economy remains encouraging with continued GDP growth in China, strong performance in Europe and improving confidence in the US. Commodities remain in high demand globally and prices are not expected to return to long term averages in the medium term. BHP trades for 10.5x 07E EPS vs RIO on 11.0x. BHP trades for 9.5x 08E EPS vs RIO at 9.5x.

BHP Billiton Limited is listed on the Australian Stock Exchange (ASX) under stock code BHP. You can view their investor website here. BHP was listed on the ASX on 13 August, 1885. Charles "Chip" Goodyear is the CEO of BHP Billiton and Don Argus the Chairman. BHP Billiton was created through the Dual Listed Companies (DLC) merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc), which was concluded on 29 June 2001. BHP Billiton Limited and BHP Billiton Plc continue to exist as separate companies, but operate on a combined basis as BHP Billiton. The headquarters of BHP Billiton Limited, and the global headquarters of the combined BHP Billiton Group, are located in Melbourne, Australia. BHP Billiton Plc is located in London, United Kingdom. The company is principally involved in minerals exploration, production and processing (particularly coal, iron ore, copper and manganese ore) and hydrocarbon exploration, production and refining. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade BHP. Check your charts and good luck with your share trading!