Goldman Sachs has turned increasingly negative on the mining sector, downgrading BHP Billiton to “sell” and slashing its target price for Rio Tinto in the face of falling iron ore prices and what it sees as China’s potential to restrict credit.
In a report out of London yesterday, Goldman analysts led by Eugene King told investors they should sell BHP and London-listed miners Antofagasta and Kumba.
The bank kept its neutral rating on Rio but still slashed its target price for the miner’s London shares by 20 per cent to £28. It cut its target price for BHP’s London shares by 21 per cent to £11. Continue Reading →