Analysts at Credit Suisse are now seriously contemplating the prospect of economic recession ahead. A general sector update highlights near-term downside risks for iron ore and EV battery materials while spot prices for base metals have now fallen below the broker’s forecasts.
All in all, Credit Suisse remains constructive on iron ore, coal and aluminium, but thinks copper has further to fall. For the miners, the broker is concerned about rising costs.
In case of a recession, Credit Suisse sees BHP as remaining more resilient than Rio Tinto. $40 target and Neutral rating retained.
Sector: Materials.
Target price is $40.00.Current Price is $39.22. Difference: $0.78 – (brackets indicate current price is over target). If BHP meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
