BHP Shares Face Crosscurrents from Copper Rally and China Iron Ore Dispute

The mining giant BHP finds itself navigating conflicting forces as surging copper prices provide a powerful tailwind while a significant contractual dispute with its largest customer threatens to disrupt its iron ore business. This divergence creates a complex challenge for the global resource company.

Market experts are growing increasingly cautious about BHP’s near-term prospects. The proportion of analysts recommending a ‘Buy’ has fallen sharply from 38% in May to just 21% currently. Conversely, neutral ‘Hold’ ratings now constitute a majority at 66%. For instance, investment bank Morgans has downgraded its stance to ‘Hold’ with a price target of A$43.90. This shift suggests that despite BHP’s operational strength, its shares are perceived by many as fully valued at current levels.

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