Zacks Investment Research downgraded shares of BHP Billiton Limited (BHP) from NEUTRAL to UNDERPERFORM on May 29, 2013, with a target price of $60.00.
We are downgrading our recommendation on the stock from Neutral to Underperform based on a lower year over year production for many of its products including crude oil, natural gas, lead and gold. Moreover, reducing prices of its commodities are hampering the company's growth. Also, a worldwide upsurge in oil prices, rising core inflation in the emerging markets as well as mining disruptions raise our concerns. Labor crises, mining costs, equipment supply uncertainty as well as currency fluctuations are also headwinds. However, BHP has been continually endeavoring to reduce its unproductive assets by selling its stakes in Pinto Valley and EKATI Mine recently. Moreover, the company's commitment towards returning shareholder values along with implementing new projects is seen as risks to our recommendation.
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