Analysts at Credit Suisse are concerned about a lack of growth options for BHP Group, which in turn may lead the company to chase higher-risk M&A . On top of this, a potential coal spin-off would further shrink the company’s portfolio. Hence, the Neutral rating.
The target price falls to $40 from $50 after a raft of adjustments including a mark-to-market on commodity prices and exchange rates.
Sector: Materials.
Target price is $40.00.Current Price is $37.76. Difference: $2.24 – (brackets indicate current price is over target). If BHP meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
