MARKET TALK: JPMorgan Cuts BHP, Fresnillo To Underweight

16th Jun 2010 07:48

0648 GMT [Dow Jones] JPMorgan Cazenove downgrades BHP Billiton (BLT.LN), Fresnillo (FRES.LN) and Lonmin (LMI.LN) to underweight from neutral. For BHP, the rating cut reflects the stock's valuation premium against peers and lack of operational and financial leverage to any one commodity, says JPM. For Fresnillo, JPM says the stock's starting to look fully-valued after a strong run over the past few weeks. For Lonmin, "we are concerned that operational issues may prevent the company from fully taking advantage of platinum group metal price rises going forward, combined with premium valuation and uncertainty over Xstrata's (XTA.LN) intentions." 2000p target on BHP, 990p on Fresnillo and 1550p on Lonmin. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 16, 2010 02:48 ET (06:48 GMT)