With another subdued showing on Tuesday, the BHP Group Ltd (ASX: BHP) share price has now pulled back over 11% from its recent demerger-adjusted record high.
In light of this, now could be a good time to look to see what brokers are saying about the mining giant.
What are brokers saying about the BHP share price?
While there aren’t many buy ratings on the Big Australian’s shares, a couple see some value at the current level.
One of those is Macquarie, which is the only broker Iâm aware of with a buy rating on its shares.
According to the note, the broker has an outperform rating and $52.00 price target on them. Based on the current BHP share price of $47.72, this implies potential upside of 9% for investors over the next 12 months.
In addition, the broker is forecasting a fully franked dividend of approximately $3.00 per share in FY 2023. This equates to a 6.3% yield, boosting the total potential return to over 15%.
Elsewhere, the team at Goldman Sachs is sitting on the fence with the miner and has a neutral rating and $49.00 price target on its shares. This suggests modest upside of 2.7% from current levels.
Finally, at the other end of the scale you have analysts at UBS, which have a sell rating and lowly $39.00 price target. This implies downside risk of approximately 18% from where the BHP share price currently trades.
Which broker makes the right call may largely depend on where commodity prices go from here. If Chinaâs reopening supports demand and high prices, then the bulls could be onto a winner here.
If it doesnât, it could be the bears that celebrate. Time will tell what happens.
The post What are experts saying about the BHP share price? appeared first on The Motley Fool Australia.
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More reading
- Here’s the iron ore price forecast for 2023: CBA
- Better buy: Fortescue vs BHP shares
- ASX 200 shares: How to invest $10,000 to get $910 per year in passive income
- Own BHP shares? Here’s what the market expects from its half year results
- Why Morgans just added these ASX 200 shares to its best ideas list
Motley Fool contributor James Mickleboro 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 Scott Phillips.
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