BHP: Barclays still neutral - cuts target price

(CercleFinance.com) - Barclays maintains its 'equal weight' recommendation on BHP shares, with a target price lowered from £26.
35 to £25.50, prefering its peer Rio Tinto, in particular due to superior growth and attractive valuation.

BHP's growth ambitions could see capex of around $11bn p.a. through to FY 2030, with limited volume growth until then, the broker warns.

In this scenario, it estimates that the mining company would produce FCF returns in the mid-single-digit range, which it deems unexciting, given the various risks it faces and its higher valuation.


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