The BHP Group Ltd (ASX: BHP) share price is having another impressive day on the ASX. At the time of writing, BHP shares are up a robust 1.54% to $49.54. That’s about 4% off its all-time high of $51.82 that we saw back in May.
The BHP share price is now up 8.6% since 21 June. That is in addition to being up 15% year to date, and 38.5% over the past 12 months.
So where to now for the BHP share price?
Could BHP shares be a buy today?
Well, one broker who thinks it could be onwards and upwards from here is investment bank Goldman Sachs. Goldman currently has BHP shares rated as a ‘buy’. It has a 12-month share price target of $53.80 for BHP.
That implies potential upside of 8.5% on the current share price. Goldman is expecting high commodity prices (mainly coal, copper and oil) to tip buckets of cash into BHP over the next year.
It’s also expecting a 50% increase in earnings and a doubling in free cash flow. That price target doesn’t include dividends though. Goldman is anticipating US$2.58 ($3.46) in dividends per share from BHP over FY2022. That would equate to a forward and fully franked dividend yield of 6.97% on current pricing.
Goldman isn’t the only one bullish on BHP shares right now. As my Fool colleague James covered yesterday, Macquarie is another broker who rates BHP as a buy today. Macquarie currently has a 12-month share price target of $63 on BHP shares. That would imply an upside of almost 27%. Macquarie is also expecting material increases in the company’s dividends going forward.
At the current BHP share price, the company has a market capitalisation of $143.76 billion, a price-to-earnings (P/E) ratio of 27.15 and a trailing dividend yield of 4.16%.
The post The BHP Group share price is rising again — so where to from here? appeared first on The Motley Fool Australia.
Should you invest $1,000 in BHP right now?
Before you consider BHP, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- Here’s what leading brokers are saying about the BHP (ASX:BHP) share price in July 2021.
- ASX 200 Weekly Wrap: ASX finishes FY21 on a high
- ASX blue chips set to unleash buybacks and dividends! But which is better?
- These high yield ASX dividend shares could be buys
- BHP (ASX:BHP) share price caught between bulls and bears in June
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3AHvdyr
Leave a Reply