The BHP Group Ltd (ASX: BHP) share price has been having a tough time over the last six months.
During this period, the mining giant's shares have lost 26% of their value and are now fetching $37.27.
While some of this decline relates to the demerger of its petroleum assets, the majority has come from regular plain old selling by investors.
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Is the BHP share price good value now?
To see if the BHP share price is good value, let's take a look at what Australia's leading brokers are saying about the mining giant. Here's a summary of the latest broker recommendations:
Citi has a buy rating and $44.50 price target. This implies potential upside of 19%. It said:
We've reduced our TP to A$44.5 but stay Buy rated. Dividend yield in FY24E is ~8% fully franked at iron ore price of US$94/t. China stimulus is expected to be a positive for iron ore markets in CY23.
Goldman Sachs has a buy rating and $40.50 price target on the company's shares, which suggests potential upside of approximately 9%. The broker said:
We believe this premium vs. peers can be maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore), high returning copper growth, and lower iron ore replacement & decarbonisation capex.
Macquarie is positive and has an outperform rating and $40.00 price target, implying potential upside of 7%. Macquarie was impressed with BHP's performance in FY 2022 and highlights its "materially better" than expected cash flow and dividend.
Over at Morgans, its analysts have an add rating and $48.40 price target on its shares. This implies potential upside of 30% for investors. It said:
Strong result with a final dividend beat. BHP continues to show it is better positioned than most (all?) of its peers. One of our key reporting season picks, we view the dividend/FCF surprise and resulting re-rating as justified.
Finally, UBS is the least positive broker I'm aware of with its neutral rating and $35.50 price target. It has concerns over potential commodity price declines in the coming years.
Overall, the picture appears very positive for the BHP share price and also its dividend. In respect to the latter, collectively, the market is forecasting a fully franked dividend yield of greater than 8% in FY 2023.
