After a solid (if expected) end to FY20, FY21 guidance across most divisions was lower than expected by Credit Suisse. For some cases like petroleum and met coal, this can be explained by a tough market backdrop, explains the broker.
All capital expenditure and exploration guidance will be updated in the August result, notes the broker.
While the broker assumes a 50% payout which comes out to be US$0.43, it believes there is capacity to pay more.
Credit Suisse retains its Neutral rating with a target price of $37.
Target price is $37.00.Current Price is $38.80. Difference: ($1.80) – (brackets indicate current price is over target). If BHP meets the Credit Suisse target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).