BHP Group reinstated with a Buy at Goldman Sachs

Goldman Sachs reinstated coverage of BHP Group with a Buy rating and A$49 price target. The stock’s 6-times expected next 12 months’ EBITDA multiple represents an “attractive valuation”, the analyst tells investors in a research note, noting that while this is a premium to Rio Tinto’s (RIO) 5-times, this can be partly maintained due to ongoing superior margins and operating performance. The firm is also bullish on Copper and expects BHP to generate $6.8B in copper EBITDA this year and $11.5B in FY25 due to ongoing supply side challenges and increasing demand.