The BHP Group Ltd (ASX: BHP) share price has been a very strong performer in recent months.
In fact, as you can see on the chart below, since this time six months ago, the Big Australian's shares are up 24%.
As a comparison, the benchmark ASX 200 index is up 7% over the same period. That's a cool 17% outperformance from this mining giant's shares.
Can the BHP share price keep climbing?
Unfortunately, one leading broker is calling time on the BHP share price gains.
Morgans has just released its best ideas list for February. These are the ASX shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence. They are also its most preferred sector exposures.
But for the first time since March 2020, there is no BHP in the broker's best ideas list this month. It has been replaced with Mineral Resources Ltd (ASX: MIN).
According to the note, the broker made the move on valuation grounds after the aforementioned strong gain by the BHP share price. It also believes its earnings profile and trading conditions have softened recently.
In light of this, it has put a hold rating and $47.00 price target on the miner's shares. This price target is a touch lower than the current BHP share price of $48.10.
Commenting on the removal, Morgans said:
BHP remains in robust shape, but compared to mid-2022 its earnings profile, operating conditions and global macro conditions have all reduced. Despite this BHP continues to push to fresh record highs in terms of share price. As a result we are left believing BHP is trading moderately ahead of fundamentals and maintain our Hold rating with an upgraded A$47ps target.
