Will This Price Target Cut Hurt BHP Billiton (BHP) Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Jefferies cut its price target for BHP Billiton BHP to $73 from $83 Thursday while maintaining a "buy" rating for the stock.

Shares of BHP gained 0.4% to $66.63 in morning trading.

The analyst firm also cut its EPS for the miner. Both cuts are due to the new commodity price forecasts which may hurt BHP.

"Chinese demand growth for commodities is unlikely to accelerate without aggressive stimulus, and commodity prices should therefore remain range-bound near current levels," Jefferies analysts wrote. "We are lowering some of our commodity price forecasts, earnings estimates and target prices to reflect this "new normal". In this environment, Rio and BHP continue to be out top picks."

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