According to Morgans, BHP Group posted a solid third quarter underlying operational performance across iron ore, copper, petroleum and nickel, while both metallurgical and thermal coal disappointed.
Management now expects the upper half of FY21 guidance for iron ore shipments. A strong performance from Olympic Dam and Antamina more than offset Escondida (missed broker’s estimate by -2%), where management noted covid-depressed volumes are likely to continue.
While maintaining a Hold rating the analyst lifts the target price to $43.60 from $42.20, reflecting guidance changes, and upgraded iron ore/copper/thermal coal forecasts and lower met coal.
Sector: Materials.
Target price is $43.60.Current Price is $47.21. Difference: ($3.61) – (brackets indicate current price is over target). If BHP meets the Morgans target it will return approximately -8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
