The BHP Group Ltd (ASX: BHP) share price has lifted higher in the past year, but is it the time to sell?
BHP shares have risen 18% in the last year and are now fetching $49.23 as of Monday's close. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has returned 14% in the last year.
Let's take a look at the outlook for the BHP share price.
What's ahead?
BHP is a major iron ore producer on the ASX 200 that also explores copper, nickel, potash, and metallurgical coal.
Shaw and Partners senior investment advisor Jed Richards is recommending investors sell BHP shares.
Commenting on BHP in The Bull, Richards highlighted the impact of commodity prices on investor sentiment in the next year. He said:
The company's most recent result delivered a strong cash dividend above expectations. Investors will be closely monitoring iron ore, copper and coal prices during the next 12 months.
The macro backdrop is still fragile given global growth is slowing. Iron ore prices are now softer than in previous years. Costs continue to increase and port facilities are operating at maximum capacity.
On the flip side, Macqaurie analysts placed an "outperform" rating on BHP shares with a $50 price target on the company's shares in January. The broker is predicting the company to deliver a fully franked dividend of $2.88 per share.
BHP delivered a 3.3% lift in iron ore production to 66.9 Mt in the December quarter. The company produced 424.3 kt of copper, also a 3% boost on the previous quarter.
Meanwhile, BHP is planning to acquire copper miner Oz Minerals Limited (ASX: OZL) in 2023. Oz Minerals shareholders will vote on this proposal in late March or early April. This could also weigh on the company's share price in the future.
BHP share price snapshot
BHP shares have climbed about 8% in the year to date. However, in the past week, BHP shares have slid more than 1%.
BHP has a market capitalisation of about $249 billion based on the current share price.
