Should you buy BHP shares amid 2024's weakness?

Is now the time to pounce on the mining giant's shares? Here's what analysts are saying.

| More on:
Three miners looking at a tablet.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

BHP Group Ltd (ASX: BHP) shares were sold off on Monday.

This saw the mining giant's shares lose 4% of their value to close the session at $41.63.

This latest decline means that its shares are now down almost 18% since the start of the year.

As a comparison, the ASX 200 index is up over 8%, which means that BHP's shares are underperforming the market by approximately 26%.

While this is clearly disappointing, has it created a buying opportunity for investors? Let's see what analysts are saying.

Are BHP shares good value?

Analysts at Bell Potter think that now could be a good time to snap up the miner's shares.

While the broker doesn't have a price target on BHP's shares, it has named the miner on its Australian equities panel in November.

Bell Potter highlights that its "panel of favoured Australian equities offer attractive risk-adjusted returns over the long term."

The broker also notes that its analysts "consider the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, strong management teams and competitive advantages."

What is the broker saying about BHP?

Bell Potter is feeling positive about BHP. This is largely due to its exposure to copper, which the broker is feeling very optimistic on. Its analysts said:

BHP Group is the world's largest mining company, and the group currently comprises four major businesses: Iron Ore, Potash & Nickel, Copper, and Coal. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake. They also operate the Olympic Dam mine in South Australia and acquired the Oz Minerals assets in 2023. Additionally, BHP owns other copper assets, including Pampa Norte in Chile, Resolution Copper in the USA, and Antamina in Peru.

BHP presents an attractive investment proposition, providing exposure to both copper and the potential upside from further Chinese stimulus measures. BHP is one of the top three global producers of copper and has the largest copper endowment of any company globally. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake.

The broker isn't alone with its bullish view on BHP's shares.

The team at Morgans currently has an add rating and $47.90 price target on them, whereas Morgan Stanley has an overweight rating and $46.85 price target on its shares. Both price targets implies potential upside of at least 12% for investors from current levels.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Image from either construction, mining or the oil industry of a friendly worker.
Materials Shares

4 popular ASX lithium shares going gangbusters on Tuesday

Pilbara Minerals and three other lithium stocks are having a particularly strong session.

Read more »

Miner looking at a tablet.
Resources Shares

South32 shares sink amid $33 million copper investment

Copper continues to be in hot demand.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Here's why the Liontown share price could rise almost 70%!

Bell Potter thinks this lithium miner could be a high risk/high reward option for investors.

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

Why is the Novonix share price rocketing 16% on Monday?

Big news is giving this stock a huge lift on Monday morning.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

Liontown shares fall on major guidance and cost update

Big changes are being made at this lithium miner due to weak prices.

Read more »

Miner standing in front of trucks and smiling, symbolising a rising share price.
Materials Shares

Core Lithium share price storming higher on 'excellent' exploration results

ASX investors are sending Core Lithium shares flying higher today.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Forget Fortescue and buy this ASX mining stock for a 30%+ return

Goldman Sachs thinks this miner is a far better option for investors seeking iron ore exposure.

Read more »

Man with his hand on his face looking at a falling share price chart on a tablet.
Materials Shares

Is the beaten down Mineral Resources share price a bargain buy now?

Let's see what Bell Potter is saying about the miner after Monday's selloff.

Read more »