Citigroup has kicked off the trading week with an upgrade for diversified natural resources company BHP Billiton Limited (ASX: BHP) pushing it up from a neutral rating to a buy.
Shares in BHP were down 0.5% to $28.48 at the time of writing with several other resource stocks dominating the early declines today including Fortescue Metals Group Limited (ASX: FMG) – down 2.2% to $4.22 – Orocobre Limited (ASX: ORE) – down 2.7% to $4.87 – and Pilbara Minerals Ltd (ASX: PLS) – down 1.8% to 79c per share.
Citi has upgraded BHP to buy with an increase on its price target for the stock from $32 to $33 off the back of momentum from the company's shale assets – which are up for divestment and may catch a higher price than previously thought.
Citi's calculations project BHP's shale might attract US$14 billion instead of US$10 billion saying rumours of global upheaval due to rising risks from economic protectionism are "overdone".
BHP's share price has tracked upwards in the last 12-months, from $25.73 at this time last year recovering from a mid-2017 low of $22.10.
