The BHP Group Ltd (ASX: BHP) share price is having a strong month. As things stand, the mining giant's shares are on course to record a monthly gain of 5%.
This has been driven by investors buying the company's shares thanks to rising iron ore prices.
Have BHP's shares now peaked? Or can they keep rising from here? Let's see what brokers are saying.
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What are brokers saying about the BHP share price?
The broker community is largely divided on where the Big Australian's shares are going next.
Most brokers are sitting on the fence with neutral ratings and price targets that are a touch below current levels. For example, Citi has a neutral rating and a $45 price target.
However, there are a few brokers that believe the BHP share price can continue to rise.
For example, Macquarie has an outperform rating and $47.50 price target and Morgans has an add rating and $50 price target. This implies a potential upside of 1.8% and 7.2%, respectively.
Morgans' bullish view is underpinned by its belief that iron ore prices could remain strong in 2024. It recently said:
Iron ore fundamentals remain healthy heading into 2024, but face some short-term risks with mandatory cuts to China steel late in 2023. High steel volumes despite low margins suggest overproduction anticipating cuts. We maintain our bullish relative call on iron ore heading into 2024.
Finally, Goldman Sachs has a buy rating and a $49.90 price target on its shares, which suggests an almost 7% upside.
It is also feeling bullish due to the favourable iron ore outlook. Earlier this month, it said:
[T]he GS commodity team have upgraded their 62% Fe price forecasts for 2023 to US$117/t (from US$101/t) and for 2024 to US$110/t (from US$90/t), with new 3/6M targets of US$130/US$120/t signaling modest upside relative to the forward curve.
Time will tell which brokers have made the right call on the BHP share price.
