BHP Billiton stock price target raised to $63 by CFRA on copper growth

Investing.com - CFRA raised its price target on BHP Billiton (NYSE:BHP) to $63.00 from $56.00 on Friday, while maintaining a Hold rating on the mining giant’s stock. The company, currently trading at $55.77 and near its 52-week high of $58.51, commands a market capitalization of $142 billion.

The price target increase reflects BHP’s copper growth potential, which partially offsets expected commodity price headwinds. The new target values BHP at 2.61x FY 26 P/BV, representing a 10% discount to its five-year mean of 2.91x.

BHP delivered strong financial results for FY 25, with net profit growing 14% year-over-year to $9.0 billion, despite revenue declining 8% to $51.3 billion. The company achieved record copper production exceeding 2.0 million tonnes, an 8% increase from the previous year. According to InvestingPro data, BHP maintains an impressive 82.2% gross profit margin and has consistently paid dividends for 46 consecutive years.

CFRA projects BHP’s revenue to fall by 1% in FY 26 and decline further by 2.5% in FY 27, primarily due to iron ore price pressure around $100 per ton amid China’s real estate downturn and oversupply concerns. Iron ore accounted for 44.7% of BHP’s FY 25 revenue.

The research firm adjusted its earnings per share forecast for FY 26 to $4.18 from $4.10 and its FY 27 EPS estimate to $4.08 from $4.02, citing copper strength and operational improvements as supporting factors. InvestingPro analysis reveals 8 additional key insights about BHP’s financial health and market position, available exclusively to subscribers.

In other recent news, BHP has been downgraded by BMO Capital Markets from Outperform to Market Perform. This change comes as BHP’s share price has reached BMO’s target price of GBP20.00. The downgrade is attributed to the recent rise in BHP’s stock price, which aligns with improving sentiment in the mining sector. Notably, iron ore prices have climbed above US$100 per ton, contributing to this sentiment. These developments highlight significant movements in the market that investors are closely monitoring.

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