BHP Group Ltd (ASX: BHP) shares are pushing higher on Friday despite the market pulling back.
At the time of writing, the mining giant's shares are up almost 1% to $44.94.
This appears to have been driven by a relatively positive reaction to the miner's quarterly update from brokers.
What are brokers saying about BHP shares?
After running the rule of the Big Australian's update, a number of leading brokers have retained the equivalent of buy ratings on its shares this morning.
For example, the team at Morgans has retained its add rating with a slightly reduced price target of $51.30.
The broker was pleased to see BHP deliver on its production and cost guidance for almost all commodities in FY 2023. Its analysts believe that this strong operational performance demonstrates why BHP shares deserve to trade at a premium to peers.
Over at Macquarie, its analysts remain positive on the mining giant. The broker has retained its outperform rating with a trimmed price target of $47. However, it wasn't as impressed as Morgans with BHP's performance but still sees value in its shares.
Finally, analysts at Goldman Sachs have retained their buy rating on the Big Australian's shares with a trimmed price target of $45.60.
Its analysts were pleased with BHP's copper and metallurgical coal production and highlight that its guidance was in-line with expectations. However, it does have concerns that BHP's dividend could be hit in FY 2024 due to its higher net debt and capex requirements. Goldman said:
4Q FY23 result: strong Cu & met coal, FY24 guidance in-line, ND & capex outlook implies lower div payout; Buy.
All in all, while brokers are positive, the upside appears a touch limited at current levels. This could arguably make it worth holding out for a pullback in the coming weeks or months.
