BHP: Oddo still a seller ahead of results
(CercleFinance.com) - Oddo BHF reiterates its "reduce" rating on the BHP share, along with its target price of 1,600 pence, seeing solid results ahead (FY 2019-20 results on 18 August), although no growth on the horizon.
The broker xpects EBITDA for the year to end-June to be 21.6 billion dollars (compared with a consensus of 22.2 billion dollars and 23.2 billion dollars last year), but expects EBITDA for 2020-21 to be less at 19.9 billion dollars.
It expects BHP to suffer from a less favourable commodity mix, lower volume growth and cash return in 2020, the analyst says, also pointing to a 2020-21 EV/EBITDA valuation of 6.5x (compared to a 10-year average of 6.3x).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker xpects EBITDA for the year to end-June to be 21.6 billion dollars (compared with a consensus of 22.2 billion dollars and 23.2 billion dollars last year), but expects EBITDA for 2020-21 to be less at 19.9 billion dollars.
It expects BHP to suffer from a less favourable commodity mix, lower volume growth and cash return in 2020, the analyst says, also pointing to a 2020-21 EV/EBITDA valuation of 6.5x (compared to a 10-year average of 6.3x).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.