Shares in mining heavyweight BHP Group Ltd (ASX: BHP) have finally hit a speed bump. BHP shares have fallen around 10.5% from its recent record high of $65.98, and are down approximately 6.5% over the past five trading sessions.
Despite the pullback, long-term shareholders still have plenty to smile about. BHP shares remain up roughly 30% in 2026 and an impressive 64% over the past 12 months.
So, is this simply a healthy breather after a huge rally, or the beginning of something more concerning?
What do brokers think?
Judging by analyst forecasts, the market isn’t leaning strongly in either direction. According to TradingView data, most brokers are taking a wait-and-see approach.
Of the 19 analysts covering BHP shares, 13 currently rate the $300 billion mining giant as a hold. Four recommend buying the stock, while two recommend selling.
That tells a story of cautious optimism rather than outright enthusiasm. Among the latest broker moves, DZ Bank upgraded BHP from sell to hold. Its $65 price target implies around 10% upside from current levels.
What’s striking, however, is the enormous spread between broker forecasts. The most bullish analyst values BHP at $94.51 a share, suggesting upside of nearly 60%. The most bearish sits at just $40.97, implying downside of around 30%.
When professional investors disagree by that much, it usually reflects genuine uncertainty about where the business is heading.
Why are BHP shares under pressure?
The catalyst for the recent sell-off was BHP’s latest update on its giant Jansen potash project in Saskatchewan, Canada.
Following a comprehensive review, management revealed Stage 2 will cost far more than previously expected. The company now expects the project will require an additional US$4.9 billion to US$5.4 billion beyond earlier estimates. That’s on top of the original US$4.9 billion budget approved in late 2023.
BHP also expects to recognise an impairment charge of around US$2.3 billion relating to Jansen Stage 2 in its FY26 results.
The timeline has deteriorated as well. First production from Stage 2 is now targeted for FY2031, two years later than originally planned.
Little patience for bad news
Unfortunately for BHP shares, this isn’t the first time Jansen’s budget has blown out.
Each successive cost increase has chipped away at investor confidence and raised questions about management’s ability to accurately forecast one of the company’s biggest growth projects.
Stage 1 remains on track for first production in FY2027, although even that project’s cost estimate has drifted higher since it was first approved. BHP has promised another update on Stage 1 before the end of the year.
Timing also mattered
Before the announcement, BHP shares had rallied about 30% since the start of 2026, leaving the stock trading near record highs.
When expectations are elevated, markets tend to punish disappointments more severely. The sell-off likely reflects not only concerns over Jansen, but also some investors taking profits after an exceptional run.
The bigger picture, however, hasn’t changed dramatically. BHP still generates enormous cash flow from its world-class iron ore business, continues to expand its exposure to copper, and retains long-term optionality through potash.
For now, though, the market appears happy to wait for greater clarity on Jansen before pushing BHP shares decisively higher again.
The post BHP shares have lost momentum. Should investors be worried? appeared first on The Motley Fool Australia.
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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.