Report
Mathew Hodge
EUR 100.00 For Business Accounts Only

Raising BHP FVE to AUD 23 per share, but Shares Remain Overvalued

We raise our fair value estimate for no-moat-rated BHP to AUD 23 from AUD 22 per share previously. The increase reflects stronger near-term commodity prices, particularly for iron ore, coal, and copper. Slightly weaker-than-expected third-quarter production and emerging cost pressures, which we discussed with the most recent half-year financial result, are a partial offset to the higher near-term prices. The more favourable prices see our fiscal 2018 and 2019 adjusted earnings estimates increase...
Underlying
BHP Group Ltd

BHP Billiton is a global resources company. Co. operates under a Dual Listed Company (DLC) structure, which consists of the BHP Billiton Limited Group and the BHP Billiton Plc Group, operating as a single economic entity. As of June 30 2017, Co. operated four reportable segments: Petroleum, which is involved in the exploration, development and production of oil and gas; Copper, which is involved in the mining of copper, silver, lead, zinc, molybdenum, uranium and gold; Iron ore, which is involved in the mining of iron ore; and Coal, which is involved in the mining of metallurgical coal and thermal (energy) coal.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Mathew Hodge

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