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Research Alert: CFRA Maintains Hold Opinion On Shares Of Bhp Group
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Bhp Group
Aug 20, 2025 4:14 AM

12:35 AM EDT, 08/20/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We adjust our 12-month target price to USD56 (from USD52), valuing BHP at 2.47x FY 26 (Jun.) P/BV, a 15% discount to its five-year mean (2.90x), reflecting commodity price headwinds that are partly offset by copper growth potential. BHP delivered a strong FY 25 performance as net profit grew 14% Y/Y to USD9.0 billion on solid operational and cost leadership, while revenue fell 8% Y/Y to USD51.3 billion despite achieving record copper production exceeding 2.0 million tons (up 8%). However, we expect revenue to grow 0.5% in FY 26 and fall by 2% in FY 27 due to iron ore price pressure, trading at ~USD100/ton (in our estimate), amid China's real estate downturn and oversupply concerns. We remain optimistic on copper fundamentals given energy transition demand but are cautious on iron ore (44.7% of FY 25 revenue) due to high Chinese inventories. We adjust our EPS forecast for FY 26 to USD4.10 (from USD4.15) and initiate our FY 27 EPS estimate at USD4.02, supported by copper strength and operational improvements.

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