Our biggest miner BHP reported yesterday, and its CEO came with a stack of warnings about China, unions and the Albanese Government. However, the ultimate test i.e. what the stock market thought about its future outlook, meant its stock price rose 1.25% to $41.35.
“For the record, BHP reported an underlying profit of $US13.7 billion ($20.22 billion) on Wednesday, beating consensus estimates by 4 per cent,” The Australian’s Cameron England reported. “Full year revenue increased 3 per cent to $US55.7 billion, while statutory net profit fell 39 per cent to $US7.9 billion, largely due to the $US2.7 billion write down of Western Australian nickel and a $US3.8 billion charge related to the Samarco dam failure.”
Ahead of yesterday’s report, company analysts tipped a 9.4% rise in the share price to a target of $45.25 against a current price of $41.35. The table below shows six out of six experts like the company going forward, with Morgans the most enthusiastic with a 18.98% rise tipped, while Macquarie only sees a 1.57% rise.
Despite the many challenges, the company looks set to do okay, even with iron ore prices down to around US$100 and the outlook more negative for prices. However, BHP is a long way down from its 52-week high of $50.84 in late December/early January when I should've sold.
