HomeMarket NewsBHP downgraded at Bernstein as iron ore skewed toward risk

BHP downgraded at Bernstein as iron ore skewed toward risk

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BHP (NYSE:BHP) experienced a 1.2% decline in Monday’s trading as Bernstein downgraded the company’s stock rating from Outperform to Market Perform. The downgrade reflects concerns about the potential negative effects of declining iron ore prices on mining companies.

Although iron ore prices have risen by 30% since May, Rio Tinto (RIO) has only seen a 5% increase, and BHP (BHP) has remained flat in the equity market. According to Bernstein’s Bob Brackett, this lack of response indicates skepticism about the sustainability of higher commodity prices. Brackett stated, β€œWe find it hard to believe they won’t get punished for falling iron ore prices.”

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