BHP Billiton (BHP) is a diversified resource company with operations around the globe. Over the longer term, we view the economic recovery and ongoing industrialization in the emerging markets quite positively, as it is expected to improve the demand and price of the company’s products.
BHP Billiton’s commitment toward its long-term growth through key investment strategies appears encouraging and expected to raise organic revenue. Moreover, the progressive dividend policy and capital management program enhance shareholders sentiments. The company’s diversification into potash development strengthens our outlook on the stock.
Thus, we upgrade our recommendation from Neutral to Outperform. Our $115.00 target price, 14.8x fiscal 2012 EPADS reflects this view.
BHP BILLITN LTD (BHP): Free Stock Analysis Report
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