BHP Group Ltd (ASX: BHP) shares have been having a tough time in recent sessions.
For example, since this time last week, the mining giantâs shares have lost 5.5% of their value.
This has been driven by a combination of the release of its quarterly update, falling iron ore prices, and concerns over global economic growth.
Will BHP shares rebound?
While the recent pullback by BHP shares is disappointing for shareholders, it could have created a buying opportunity for others.
Particularly given that a number of brokers believe the Big Australianâs shares could rise beyond the $50 mark again in the coming months.
For example, Morgans has just reiterated its add rating with a $50.40 price target. Based on the current BHP share price of $44.33, this implies potential upside of almost 14% for investors over the next 12 months.
It is a similar story over at Goldman Sachs. While its analysts only have a neutral rating on the mining giantâs shares, they have a price target slightly higher than Morgansâ at $50.50. This suggests 14% upside for investors from current levels.
A third broker that sees scope for the minerâs shares to climb beyond $50.00 is Macquarie. Its analysts responded to BHPâs quarterly update by retaining their outperform rating with a $52.00 price target. If BHP shares were to climb to this level, it would mean a sizeable 17% return for investors.
But the returns won’t stop there. All three brokers are expecting an attractive fully franked dividend yield in FY 2023. Morgans expects a 6.5% yield, Goldman is forecasting a 7% yield, and Macquarie is anticipating a yield of approximately 7.6%.
This boosts the total return on offer with BHP shares to over 20% in all cases, which could make it well worth considering if you’re looking for mining sector exposure.
The post Top brokers predict BHP shares to surge past $50 again in 2023 appeared first on The Motley Fool Australia.
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More reading
- Morgans says ‘attractive buying opportunity’ coming for BHP shares
- 3 ASX 200 stocks brokers just upgraded to âbuyâ
- Top brokers name 3 ASX shares to buy today
- Down 8% in a week, is the BHP share price facing more headwinds in 2023?
- Investing in ASX 200 mining stocks? Here’s Citi’s latest iron ore price forecast
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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