BHP – Macquarie rates the stock as Outperform

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Macquarie make some changes to production forecasts for the US shale assets but as the changes are largely post FY22 there is only a modest impact on near-term earnings.

US onshore assets remain a key source of negative sentiment for BHP and the broker’s forecasts imply a return to cash consumption for the next two years. After factoring recent FX moves the Australian target price is unchanged at $29. Outperform retained.

Sector: Materials.

Target price is $29.00.Current Price is $24.40. Difference: $4.60 – (brackets indicate current price is over target). If BHP meets the Macquarie target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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