Bayon Financial

Graeme Cunningham

Mr. Cunningham is a CFA Charterholder with over 15 years of experience as an equity research analyst, mostly on the sell side at investment banks, including Goldman and Jefferies, and with some time on the buy side. He has covered the consumer, telecoms, financials, energy and mining sectors, with a focus mainly on Southeast Asia, including Thailand and Vietnam.

Independent Insight Provider

Bayon Financial provides industry and company analysis focusing on mid and small cap equity research coverage across a range of sectors including mining, financials and telecoms.

Equity Bottom-Up

<ul>
<li>BHP and Rio have both escaped from potentially long messy merger processes with lower ROE targets, Anglo American and Glencore, respectively, over the past few months </li>
<li>This may have just been just in time given the abrupt deterioration in the macro environment, leaving the companies leaner, meaner and better to positioned to handle the new challenges </li>
<li>We were bearish prior to the risk surge and viewed huge consensus upgrades as overly bullish, and there is further downside to our valuations even after recent share price pullbacks</li>
</ul>


BHP and Rio have both escaped from potentially long messy merger processes with lower ROE targets, Anglo American and Glencore, respectively, over the past few months 
This may have just been just in time given the abrupt deterioration in the macro environment, leaving the companies leaner, meaner and better to positioned to handle the new challenges 
We were bearish prior to the risk surge and viewed huge consensus upgrades as overly bullish, and there is further downside to our valuations even after recent share price pullbacks


BHP, Rio Tinto: Escape From the Merger Morass

BHP Group Ltd

BHP, Rio Tinto: Escape From the Merger Morass