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BHP May Surprise on Cash Returns -- Market Talk

8 Jan 2018 12:19 am

0019 GMT - Macquarie switches its preference to BHP Billiton from Rio Tinto while both are better liked at the investment bank than South32 among Australia's diversified miners. The firm does think earnings momentum for all 3 companies is strong considering where spot commodity prices have been, but Macquarie now thinks BHP will fare best in that environment the next 2 years. It also thinks BHP could surprise next month on the capital-management front when releasing F1H results next month. In comparison, "expectations for Rio and South32 to boost cash returns [are] largely anticipated." Shares of all 3 are down slightly this morning after last week's strong gains. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 07, 2018 19:19 ET (00:19 GMT)

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