BHP Group reinstated with a Neutral at Goldman Sachs

Goldman Sachs reinstated coverage of BHP Group shares traded in London with a Neutral rating and 2,400 GBp price target. The company offers optionality with a $20B copper pipeline and strong production growth over 2024-25 and the firm continues to believe that BHP’s major opportunity is growing copper production in Chile at Escondida and Spence, as well as growing copper production and capturing synergies in South Australia, the analyst tells investors in a research note. In a separate note, Goldman Sachs analyst Paul Young had reinstated BHP Group traded in Australia with a Buy rating and A$49 price target. The stock’s 6-times expected next 12 months’ EBITDA multiple represents an “attractive valuation”, the analyst tells investors in a research note, noting that while this is a premium to Rio Tinto’s (RIO) 5-times, this can be partly maintained due to ongoing superior margins and operating performance. The firm is also bullish on Copper and expects BHP to generate $6.8B in copper EBITDA this year and $11.5B in FY25 due to ongoing supply side challenges and increasing demand, Goldman Sachs stated.