BHP share price tipped to rise to $56: expert

Amid rising commodity prices, 6 brokers have updated their ratings and 12-month share price targets for BHP.

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The BHP Group Ltd (ASX: BHP) share price closed at $47.58 on Tuesday, up 2.3% amid a strong day for mining stocks.

As many commodity prices soar, the market's largest ASX mining share hit a near two-year high of $48.49 last Wednesday.

Over the past week, six brokerages and global banks have updated their ratings for the ASX 200 iron ore and copper mining giant.

The one that stands out is from Jason Fairclough at Bank of America.

Fairclough reiterated his buy rating on BHP and raised his 12-month share price target from $49 to $56.

This implies a potential 18% upside for investors who buy BHP shares today.

A $56 share price would be a record for Australia's largest mining company.

The all-time high for the BHP share price was $50.84, reached on 28 December 2023.

Let's see how other analysts' ratings have changed.

Where to next for the BHP share price?

Yesterday, Macquarie reiterated its hold rating on BHP and raised its 12-month share price target from $43 to $48.

Morgan Stanley reiterated its buy rating on BHP shares with a price target of $48.

Last week, Citi reiterated its hold rating and raised its price target from $47 to $48.

Barclays also reiterated its hold rating with a price target of $50.12.

Ord Minnett reiterated its buy rating on BHP shares with a price target of $48.

Rising commodity prices

The BHP share price is rising alongside commodity values.

The iron ore price is up almost 10% over the past year to US$108.25 per tonne.

The copper price is up 39% to US$5.97 per pound, and hit a record above US$6 per pound last week.

BHP is now the world's largest copper producer.

BHP also has high-quality metallurgical coal operations.

The coking coal price has risen by almost 20% over the past 12 months to US$235.33 per tonne.

BHP is building the Jansen potash project in Canada, with first production anticipated in mid-2027.

While Jansen is not yet operational, a 24% lift in the potash price over the past 12 months bodes well for BHP shares.

The potash price is currently US$358.33 per tonne.

BHP announced it was putting its Western Australia Nickel operations into care and maintenance in July 2024 due to a slump in nickel prices.

The slump was caused by a huge ramp-up in Chinese-backed nickel mining operations in Indonesia.

But nickel appears to be rebounding, up 26% in one month and 13% year over year.

On Tuesday, Trading Economics analysts commented:

Improving demand from Chinese stainless steel mills and EV battery producers is supporting the rebound, while traders adjust speculative positions amid ongoing supply uncertainty from Indonesia, the world's largest nickel producer.

Indonesia had signaled a potential 34% cut in 2026 output, but final quotas remain pending.

According to BHP, the miner intends to review its decision to temporarily suspend Western Australia Nickel by February next year.

Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Barclays Plc. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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