Last week saw UBS downgrade BHP to a “sell”, we take our hat off to them for being prepared to go out on a limb but we don’t really agree. We trimmed our position in December around $46.40 in line with our short-term view of reducing above $46 and adding into weakness under $40 i.e. we maintain our bullish outlook towards the miner over the medium term especially as its dependence on iron for earnings will fall over the years ahead. UBS’ concerns lie around net debt and growing capex creating a risk to dividends even after a likely strong finish to FY23 – BHP reports on 22nd Aug.
- We remain keen buyers of BHP into pullbacks under $40.
MM is long and bullish toward BHP
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