On Wednesday, Deutsche Bank (ETR:DBKGn) adjusted its price target on BHP (BHP:LN) (NYSE: BBL) shares, reducing it to GBP22.50 from the previous GBP23.50, while keeping a Hold rating on the stock.
BHP's fiscal year 2024 results surpassed the consensus estimates, reporting an underlying EBITDA of $29.0 billion compared to the anticipated $28.5 billion.
The mining giant also reported a lower net debt of $9.1 billion, undercutting the consensus forecast of $10.2 billion. The final dividend per share (DPS) was announced at 74 cents, matching expectations and representing a 54% payout for the fiscal year.
The company's earnings presentation highlighted its focus on organic copper growth opportunities. Among the key points was BHP's plan to double copper production in South Australia and restore production levels at the Escondida mine. It was noted that approvals for major copper projects are anticipated starting from the fiscal year 2027, coinciding with a reduction in spending on the Jansen project.
BHP's CEO, Mike Henry, emphasized the company's commitment to organic growth as its primary strategy, referred to as "Plan A." However, he also indicated that BHP is keeping its options open for potential acquisition opportunities. This strategic stance comes as the company looks forward to expanding its copper production capabilities in the coming years.
The financial results and strategic plans outlined by BHP reflect its position in the mining sector and its approach to growth amid the industry's evolving dynamics. With the revised price target, Deutsche Bank acknowledges the company's solid performance while maintaining a cautious outlook on the stock.
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