Analyst: Adrian Prendergast, Morgans
Price target: A$31.69 (previously $29.56)
Thursday’s close: $30.33
Reason: Still in add territory
Comments: BHP's major commodity exposures (coal, copper, oil and iron ore) are now trading at levels materially above FY18 consensus forecasts. This gives us confidence that the upgrade cycle (for market earnings expectations) still has a considerable way to go. This aligns well with our expectation that we are approximately two years into a four to six year cycle for commodities. The initial phase of the recovery has been characterised by unexpectedly str...