In afternoon trade the BHP Billiton Limited (ASX: BHP) share price has edged higher to $26.64.
This small gain has brought the mining giant's year-to-date return to almost 7%.
But according to one leading broker the BHP share price could still have a little further to run over the next 12 months.
A research note out of Deutsche Bank this morning reveals that its analysts have retained their buy rating and increased the price target on its shares to $28.50.
This price target implies a potential return of 7% for its shares, excluding any future dividends.
According to the note, the broker has increased its price target after making positive adjustments to its iron ore earnings forecasts.
BHP wasn't the only share to be given the thumbs up by Deutsche this morning. Rio Tinto Limited (ASX: RIO) was also given a buy rating and an increased price target of $77.00.
That price target implies potential upside of almost 11% from the current Rio share price.
Should you invest?
In my opinion, an investment in BHP comes largely down to whether petroleum and iron ore prices remain favourable.
Combined these two commodities accounted for approximately 65% of company EBITDA in FY 2017.
As I'm more bullish on oil prices now than I was last time I looked at BHP, I would agree with Deutsche that it could be a good time to pick up shares and would choose it ahead of Rio Tinto due to its diversification.
