Citigroup Downgrades BHP Billiton (BHP)
Citigroup reported on Wednesday that they have lowered their rating on natural resources company, BHP Billiton Limited(BHP).
The firm has downgraded BHP from a “Buy” to “Neutral.”
An analyst from the firm commented, “DQ12 production was in-line with our estimates, with iron ore/petroleum better and coal/copper weaker. Production guidance for oil, iron ore and copper reaffirmed, but our FY13+ estimates have been downgraded on lower coal & nickel prices, plus a higher A$. After the rally in the share price we downgrade our recommendation to Neutral, with an unchanged A$36/share target.”
BHP Billiton shares were up 57 cents, or 0.73% during premarket trading Wednesday. The stock has been mostly flat in the past year.
The Bottom Line
Shares of BHP Billiton (BHP) have a 2.59% dividend yield, based on last night’s closing stock price of $77.93. The stock has technical support in the $72-$75 price area. If the shares can firm up, we see overhead resistance around the $80-$82 price levels.
BHP Billiton Limited(BHP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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