BHP share price hits new record high

BHP shares have now beaten all 12-month price targets set by experts since its FY26 report.

| 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

The BHP Group Ltd (ASX: BHP) share price reached a new all-time record of $68.22, up 1.6%, on Tuesday.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is 0.8% higher as earnings season continues.

BHP shares have now exceeded all the new 12-month price targets set by experts since its FY26 report on 18 August.

There is no news from the ASX 200's most valuable company by market capitalisation today.

Two excited mining workers in yellow high vis vests and hardhats shake hands to congratulate each other on a mineral discovery

Image source: Getty Images

What's pushing the BHP share price higher?

It's certainly an interesting situation given there is just one buy rating among 11 experts since the miner released its results.

That buy call came from Morgan Stanley.

The top broker retained its buy call on the ASX 200 mining giant and raised its 12-month target from $67 to $67.50 post-results.

That was the highest target price among the 11 experts.

Nine experts reiterated their hold calls on BHP shares after the FY26 report.

However, Morgans downgraded the ASX 200 mining share to a sell with a $55.30 target, implying a 19% downside ahead.

The lowest 12-month target among the 11 brokers is $51.43 from Deutsche Bank.

This suggests a potential 24% downside over the next 12 months.

What did BHP report for FY26?

BHP reported a record underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$32.9 billion for FY26.

That was 27% higher than FY25.

A 6% unit cost reduction across major assets and increased production at its coal and iron ore mines contributed to a 30% profit boost.

Underlying attributable profit came in at US$13.2 billion, up 30%, and net operating cash flow was US$21.8 billion, up 17%.

While BHP has a long history as an iron ore giant, in recent years, it has become the world's largest copper producer.

The red metal accounted for 54% of BHP's EBITDA in FY26.

What else is going on?

The miner is benefiting from a lift in the iron ore and copper prices today.

The copper price is up 0.3% to US$6.61 per pound on Tuesday.

Copper hit a new all-time price peak of US$6.71 per pound on 5 August amid higher demand due to the green energy transition.

The copper price is up 16% in the 2026 calendar year so far and up 48% over 12 months.

The iron ore price is up 0.14% to US$95.34 per tonne today.

Iron ore slipped below US$100 per tonne just after the start of the new financial year.

This followed about three years of trading mostly above it.

Trading Economics analysts explained the recent weakness:

China's steel output fell 3.6% year-on-year to 76.93 million tons in July, the lowest for the month since 2017, while inventories remained elevated.

Weak property activity weighed on demand, with home prices down 3.2% year-on-year, while only about one-third of steelmakers were profitable.

China's July iron ore imports also fell 4% month-on-month to 108.09 million tons as shrinking steel margins prompted some mills to undertake maintenance.

However, fresh stimulus measures and expectations of higher demand ahead of the September peak season are supporting the iron ore price today.

China is planning measures to boost domestic demand and growth.

The National Development and Reform Commission (NDRC) is also urging local governments to accelerate major projects.

Chinese steel production is a key driver of global iron ore demand.

Motley Fool contributor Bronwyn Allen 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

Senior man looking at his laptop and pondering something.
Resources Shares

Should I invest $10,000 into Fortescue shares?

The latest earnings forecasts make me cautious about the mining giant.

Read more »

Woman looking at her computer and pondering something.
Resources Shares

Are Rio Tinto shares a good buy and hold pick?

I think several major projects could reshape Rio Tinto over the coming years.

Read more »

Two miners laughing and having fun while using smart phone during their coffee break.
Resources Shares

$6,000 invested in BHP shares 12 months ago is now worth….

BHP shares have hit a fresh all-time high today.

Read more »

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

FireFly Metals reveals robust Green Bay PEA and resource boost

FireFly Metals released strong Green Bay project economics and a resource upgrade, with early works and growth plans well underway.

Read more »

Two miners examine things they have taken out the ground.
Resources Shares

Southern Cross Gold reports drilling results

Southern Cross Gold releases high-grade gold-antimony drill results at Sunday Creek, expanding the project’s size and strategic significance.

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Resources Shares

Westgold Resources launches $100m Meekatharra expansion plan to boost output

Westgold Resources announced plans to upgrade its Meekatharra processing hub, aiming to lift output and improve cash generation from FY28.

Read more »

CEO of a company talking.
Resources Shares

Aurelia Metals appoints Steve Badenhorst as new CEO to lead next growth phase

Aurelia Metals appoints mining veteran Steve Badenhorst as Managing Director and CEO, signalling a new phase of growth for the…

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Broker Notes

With profits surging to $13.7 billion, are BHP shares a buy, hold or sell now?

A leading expert provides his forecast for BHP’s surging shares.

Read more »