BHP - Macquarie rates the stock as Outperform
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BHP's result was largely in line with the broker, leaving the 55c dividend the major positive surprise. With debt now inside the company's target range, the broker expects more returns to shareholders ahead.
One area of weakness was cost performance, with operational issues at a number of sites impacting on previous productivity gains. Despite the drag of a stronger A$, the broker still sees capital management potential as the feature, noting the sale of the shale assets would add even more to the kitty.
Outperform retained. Target falls to $36.40 from $37.60.
Target price is $36.40.Current Price is $31.30. Difference: $5.10 - (brackets indicate current price is over target). If BHP meets the Macquarie target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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