'Sell' recommendations on BHP Group Ltd (LSE:BHP, ASX:BHP) and Rio Tinto PLC (LSE:RIO) shares have been removed by UBS as it sees the iron ore price stabilizing in the near future.
Both mining giants have been upgraded to a 'neutral' rating, given the bank's expectation that iron ore prices will hold within the $100-130 per tonne range over the next six months.
In a separate note, the bank said it now expects iron ore prices to fall by less than previously thought and costs are seen likely to remain higher for longer. The bank also lifted its long-term iron ore price to US $85/t, compared to US$65/t previously and the US$75/t consensus.
Also upgraded were Vale SA (ADR) (NYSE:VALE), Fortescue Metals Group
(ASX:FMG) and Deterra Royalties, all moved to 'neutral'.
