It's a rough day on the market for the BHP Group Ltd (ASX: BHP) share price as the S&P/ASX 200 Index (ASX: XJO) crumbles under the weight of Wall Street.
New York-based indexes tumbled overnight amid the release of hotter-than-expected inflation data.
And their suffering is dragging on the Aussie bourse. The ASX 200 is down 2.72% shortly after open while the S&P/ASX 200 Materials Index (ASX: XMJ) has dumped 2.65%.
The BHP share price hasn't managed to escape the carnage. It's trading at $38.52 right now, 1.98% lower than its previous close.
But top broker Macquarie has doubled down on the stock, reportedly upping its price target for BHP shares by 5%. However, others have taken a swing at iron ore.
Let's take a closer look at what brokers are expecting from the ASX 200 materials giant.
Top broker tops 9% upside for BHP share price
The BHP share price is suffering amid a broader market downturn on Wednesday despite bullish sentiments from a top broker.
Macquarie has upped its expectations of coking coal – otherwise known as metallurgical coal – and companies that produce it, The Australian reports.
The broker is said to have lifted its expectations for the commodity's value to US$350 a tonne in 2023 and boosted its long-term forecast to US$200 a tonne. Though, it has also reportedly dropped its forecast for the December quarter to US$310 a tonne.
Its bullish outlook is reportedly due to an underinvestment in supply and India's dependency on coal imports and comes despite falling demand for steel.
BHP's coal segment brought in US$15.5 billion of revenue last financial year. It saw an average realised price of US$347.10 per tonne of coking coal – a 225% year-on-year improvement.
On the back of its bullish outlook for coal, Macquarie has reportedly lifted its price target for BHP shares 5% to $42. That represents a potential 8.94% upside.
On a less positive note, however, Fitch Solutions has dropped its near-term expectations for iron ore, the Australian Financial Review reports.
The firm is said to have dropped its outlook for 2022's average iron ore price by US$15 to US$115 a tonne.
That's expected to fall to US$100 a tonne in 2023, and by an additional US$10 a tonne every year thereafter until 2025.
Its bearish expectations are reportedly due to recovering inventories and slowing growth in major economies.
