BHP set for long-term oil recovery, mining underappreciated, Jefferies says

|About: BHP Billiton Limited (BHP)|By:, SA News Editor

BHP Billiton (BHP +2.2%) is higher after Jefferies analysts say the company's energy business should enjoy a boost from rising oil prices and its mining assets are "underappreciated."

A Fed rate hike could depress commodity prices in the short term, but the firm foresees a recovery in Q1 2017 from seasonal factors and a dividend increase next year.

BHP boasts some of the highest quality assets in the global mining industry, Jefferies says, and unlike most other miners, "BHP has significant organic growth optionality as a result of the quality and scale of its resources. We estimate that there is at least $18B of potential value from long-term growth within the BHP portfolio."