Own BHP shares? Here's an expert's view on the new CEO

One of the world's biggest miners has a new boss.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A lot of Australians have exposure to BHP Group Ltd (ASX: BHP) shares, whether that's directly or indirectly. It's important who the leader of the ASX mining share is because they set the strategic direction of the business.

Earlier this week, BHP announced that Brandon Craig will become the new CEO and a director of BHP on 1 July 2026. He'll replace Mike Henry, who will step down after six and a half years. Brandon Craig has already been working at BHP for decades in various roles.

Experts from broker UBS have given their view on the appointment and what it could mean for BHP (shares).

Two CEOs shaking hands on a deal.

Image source: Getty Images

UBS opinions on the appointment

Firstly, the broker pointed out what Craig's achievements are at BHP. Under his leadership, Escondida added around 550kt of additional more copper than November 2024 guidance, reflecting "operational and mine plan optimisation".

Before that, as leader of the Western Australian Iron Ore (WAIO) business, he led WAIO to be the world's highest margin iron ore business.

The broker said that his track record of "operational excellence" has been central to his rise in the company.

UBS said:

In our observation, Craig brings strong strategic insight across the business, projects, portfolio and BHP's markets; while being across the detail in operations, especially safety & productivity. In our opinion, Craig represents a strong pair of hands to take forward BHP's ambitious growth pipeline across copper, in Chile, Argentina and South Australia; and Potash at Jansen.

The broker believes the ASX mining share will continue to be disciplined when executing growth, carry out acquisitions if the value is compelling, and allocate capital to balance growth and returns.

UBS also said that Craig's focus will also be on "strengthening capacity to deliver disciplined outcomes on projects, leaning harder into curating relationships in jurisdictions BHP operates in, and embracing technology change to drive value."

Broker views on the BHP share price

UBS currently has a neutral rating on BHP shares, with a price target of $52. The broker is currently forecasting that the ASX mining share could generate US$12.6 billion of net profit in FY26, which would translate into earnings per share (EPS) of US$2.48.

That increased level of profit could lead to an annual dividend payment per share of US$1.49 in the 2026 financial year.

Net profit is projected to reduce a little in FY27 to US$12 billion, translating into EPS of US$2.37. This could fund an annual dividend per share of US$1.19.

While the short-term looks positive for profit generation, analysts are seeing better ASX share opportunities elsewhere.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

More on Resources Shares

a man wearing a hard hat and a high visibility vest stands with his arms crossed in front of heavy equipment at a mine site.
Resources Shares

3 ASX mining shares: Buy, hold, or sell?

ASX 300 mining shares have fallen 16% since the conflict in Iran began.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

Following a key approval, one broker tips 80% upside for this ASX rare earths stock

There could be massive gains to be made.

Read more »

Two workers on site discuss the next stage of this civil engineering job.
Resources Shares

This ASX mining stock just jumped. Here's what's driving the move today

Nickel Industries shares are in the green today.

Read more »

A business person directs a pointed finger upwards on a rising arrow on a bar graph.
Broker Notes

Why this buy-rated ASX mining share is tipped to surge 112%

A leading broker expects this ASX mining share to more than double investors’ money in a year.

Read more »

A woman in high visibility clothing and a hard hat stands in front of an aluminium smelter.
Resources Shares

Rio Tinto just locked in a major deal. Here's why investors are buying today

Rio Tinto shares rise after announcing a major aluminium deal.

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Are these 3 ASX 200 mining shares a buy, hold, or sell?

What changes have the experts made to their ratings and price targets since the war in Iran began?

Read more »

A man in a hard hat gives a thumbs up as he holds a clipboard in one hand against a blue sky background.
Resources Shares

ASX mining shares have slumped but long-term outlook is positive

The ASX 200 materials sector has slumped 19% since the war in Iran began.

Read more »

Two workers working with a large copper coil in a factory.
Broker Notes

Should you buy this $8 billion ASX 200 copper stock amid surging global demand?

A leading analyst drills into the outlook for this $8 billion ASX copper miner.

Read more »