Zacks Investment Research downgraded shares of BHP Billiton Limited (BHP) from OUTPERFORM to NEUTRAL on April 30, 2014, with a target price of $74.00.
BHP Billiton reported improved production results for the first nine months of fiscal 2014. Production of most of the commodities increased in the reported period. In the same time period, the company reported record iron ore production in the WAIO segment. The company has various projects in its pipeline which are expected to start production in fiscal 2015. However, the company has been experiencing reduction in prices for most of its commodities, which is lowering earnings. Labor crises, mining costs, equipment supply uncertainty as well as currency fluctuations are the other headwinds. Based on these factors, we are downgrading our recommendation on the stock to Neutral from Outperform.
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