Credit Suisse cuts oil price forecasts substantially, lowering Brent in 2020 to US$37-42/bbl from US$55-63/bbl. 2021 forecasts are also reduced, to US$45-50/bbl from US$55-65/bbl.
Earnings for BHP Group are reduced by around -2% over FY20 and -7% over FY21. Neutral rating and $41 target maintained.
Sector: Materials.
Target price is $41.00.Current Price is $26.33. Difference: $14.67 – (brackets indicate current price is over target). If BHP meets the Credit Suisse target it will return approximately 36% (excluding dividends, fees and charges – negative figures indicate an expected loss).
