BHP Group Ltd (ASX: BHP) shares were sold off on Monday.
This saw the mining giant's shares lose 4% of their value to close the session at $41.63.
This latest decline means that its shares are now down almost 18% since the start of the year.
As a comparison, the ASX 200 index is up over 8%, which means that BHP's shares are underperforming the market by approximately 26%.
While this is clearly disappointing, has it created a buying opportunity for investors? Let's see what analysts are saying.
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Are BHP shares good value?
Analysts at Bell Potter think that now could be a good time to snap up the miner's shares.
While the broker doesn't have a price target on BHP's shares, it has named the miner on its Australian equities panel in November.
Bell Potter highlights that its "panel of favoured Australian equities offer attractive risk-adjusted returns over the long term."
The broker also notes that its analysts "consider the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, strong management teams and competitive advantages."
What is the broker saying about BHP?
Bell Potter is feeling positive about BHP. This is largely due to its exposure to copper, which the broker is feeling very optimistic on. Its analysts said:
BHP Group is the world's largest mining company, and the group currently comprises four major businesses: Iron Ore, Potash & Nickel, Copper, and Coal. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake. They also operate the Olympic Dam mine in South Australia and acquired the Oz Minerals assets in 2023. Additionally, BHP owns other copper assets, including Pampa Norte in Chile, Resolution Copper in the USA, and Antamina in Peru.
BHP presents an attractive investment proposition, providing exposure to both copper and the potential upside from further Chinese stimulus measures. BHP is one of the top three global producers of copper and has the largest copper endowment of any company globally. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake.
The broker isn't alone with its bullish view on BHP's shares.
The team at Morgans currently has an add rating and $47.90 price target on them, whereas Morgan Stanley has an overweight rating and $46.85 price target on its shares. Both price targets implies potential upside of at least 12% for investors from current levels.
