BHP Group Ltd (BHPLF – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst James Redfern from Bank of America Securities maintained a Buy rating on the stock and has a A$47.50 price target.
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James Redfern has given his Buy rating due to a combination of factors including BHP Group Ltd’s solid financial performance and stable future guidance. The company reported its 1H FY25 results with an underlying EBITDA of $12.4 billion, which was in line with market expectations. Additionally, BHP’s interim dividend of 50 US cents per share was slightly ahead of consensus, reflecting a strong commitment to shareholder returns.
Moreover, BHP’s financial health is underscored by its net debt position of $11.8 billion, which falls within the targeted range, demonstrating effective debt management. Despite anticipated increases in net debt due to specific transactions and settlements, the company’s cost, production, and capital expenditure guidance remain unchanged, indicating stability in its operations. Consequently, Redfern maintains a price objective of 47.50 AUD per share, highlighting a substantial potential total shareholder return of 20%.
In another report released today, Macquarie also maintained a Buy rating on the stock with a A$42.00 price target.