Broker snap: Barclays flip-flops on Anglo and BHP

26th Jun 2009 13:31

Barclays has been giving the miners the once-over and has moved some of its ratings as a result, with bid target Anglo American predictably seeing an upgrade.Barclays sees the share price of Anglo American hitting 2300p as the merger scenario with Xstrata develops. Barclays believes either Xstrata will abandon its "merger of equals" stance and up its offer, or a white knight will emerge. Failing that, the merger approach will at least act as a kick up the backside to the Anglo management.Barclays previously had a price target of 1700p for the stock, which the bank has upgraded to "overweight" from "equal weight".Sector giant BHP Billiton sees its rating go the other way, down to "equal weight" from "overweight". BHP still has defensive properties and "one of the best [management teams] in the business" but Barclays believes that the premium investors are being asked to pay for these qualities is no longer appropriate in an environment where appetite for risk is returning.The BHP price target has been cut from 2100p to 1650p.