FY21 earnings were in line and net debt and dividends ahead of expectations. BHP Group has announced the approval of Jansen and the merger of its petroleum division with Woodside Petroleum ((WPL)), both of which UBS anticipated.
UBS believes the risk/reward is balanced, with cash returns and restructuring supportive, although notes iron ore prices remain vulnerable. Neutral rating and $42 target retained.
Sector: Materials.
Target price is $42.00.Current Price is $51.33. Difference: ($9.33) – (brackets indicate current price is over target). If BHP meets the UBS target it will return approximately -22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
