RTNTF - BHP: Improvements Visible But Downside Possible Too

2024-04-20 09:50:00 ET

Summary

• BHP's price continues to weaken, but pockets of upside are emerging even as some risks sustain.
• The company's financial performance has improved, supported by an uptick in iron ore and copper prices. The full year FY24 also promises to be an improvement over the past year.
• The stock's forward P/E also look attractive compared with its past average and the materials sector. It also has a healthy dividend yield.
• However, declining iron ore prices YTD, risks of the lagged impact of inflation on its profits and more attractive peers like Rio Tinto and Vale work against it.

Since the last time I wrote about the Australian multi-commodity miner BHP ( BHP ) ( OTCPK:BHPLF ) in December 2023, its price is down by 12%. Even at the time, there were risks to the company, prompting a Hold rating....

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