BHP shares have no further upside according to Goldman Sachs (NYSE:GS) in an uncompromising assessment of the mining titan’s current value.
Aussie-based BHP already trades at a premium to its rivals Glencore and Rio Tinto, which might be justified by its relative performance in Pilbara and returning copper growth, but cash flow is lower than its peers and so is the dividend yield.
On that basis, Rio Tinto is a better bet says the US bank with the cash flow gap widening further if BHP buys Oz Minerals.
Goldman’s target price is A$48.40 (£27.10), against a market price of 2,635p today.