Macquarie believes BHP Group’s valuation multiples could expand after the planned Petroleum demerger. It’s thought previous investor interest was suppresed due to strict ESG mandates. The analyst estimates the group’s dividend franking rate of 100% will remain.
The broker likes the company’s organic opportunities with a bias to the future facing commodities, such as copper and nickel, and maintains its Outperform rating. The target price of $60 is unchanged.
Sector: Materials.
Target price is $60.00.Current Price is $46.80. Difference: $13.20 – (brackets indicate current price is over target). If BHP meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
