Goldman Sachs rates ((BHP)) as Buy (1) -
Goldman Sachs conducted a deep analysis of BHP Group and Rio Tinto's ((RIO)) project pipelines, given both miners are back in investment mode. The broker estimates -US$50-60bn capex spending by each company excluding maintenance capex.
The broker estimates all growth capex for Rio would increase to -US$12-13bn per annum which is the same for BHP.
The broker notes Rio trades at a free cash flow yield of 7-8% until the medium-term vs 4% for BHP, with iron ore and copper divisions the biggest contributors.
From 2030 onwards, the broker expects BHP's free cash flow to begin accelerating as key copper projects come into production.
The broker prefers Rio over BHP but notes BHP will partly maintain its premium due to ongoing superior margins and operating performance, particularly in Pilbara iron ore.
The analyst made minor changes to earnings estimates. Target price declines marginally to $47.3 from $47.4. Buy maintained.
This report was published on March 12, 2025.
Target price is $47.30 Current Price is $38.95 Difference: $8.35
If BHP meets the Goldman Sachs target it will return approximately 21% (excluding dividends, fees and charges).
Current consensus price target is $44.93, suggesting upside of 17.0%(ex-dividends)
Goldman Sachs rates ((BHP)) as Buy (1) -Goldman Sachs conducted...
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Last
$38.65 |
Change
0.410(1.07%) |
Mkt cap ! $196.1B | |||
| Open | High | Low | Value | Volume |
| $38.72 | $39.03 | $38.55 | $294.6M | 7.587M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 6500 | $38.65 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $38.70 | 10000 | 1 |
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| Last trade - 16.10pm 14/03/2025 (20 minute delay) ? |
| BHP (ASX) Chart |