The BHP Group Ltd (ASX: BHP) share price is having a very poor start to the week.
In morning trade, the mining giant's shares have dropped 6% to $45.52.
This appears to have been driven by weakness across a range of commodity prices following weak data out of China.
Is the BHP share price weakness a buying opportunity?
One leading broker that is likely to see the weakness in the BHP share price as a buying opportunity is Morgans.
Late last week the broker retained its add rating and lifted its price target on the Big Australian's shares to $54.30.
Based on the current BHP share price, this implies potential upside of 19% for investors. And that's before the big dividends the broker is forecasting in the coming years.
For example, in FY 2022 and FY 2023, Morgans has pencilled in yields of 8.5% and 6.5%, respectively.
What did the broker say?
While Morgans wasn't overly impressed with BHP's quarterly update, it saw enough to remain bullish.
The broker said: "Nearly two years into the pandemic, but this was undoubtedly the worst COVID quarter for BHP. WAIO and Nickel West were impacted by WA's first COVID wave, while the already struggling Escondida workforce was hit by Omicron. While not immune to COVID and inflationary pressures, BHP's position as the lowest cost iron ore miner positions its flagship WAIO business to sustain its earnings strength (also helped by the lack of development activity in the Pilbara)."
"We have updated our forecasts for guidance changes and the 3Q22 result, and rolled our model forward. We have also lifted the lump proportion in sales and slightly trimmed inflation assumptions on WAIO unit costs to keep within guidance."
