BHP Price Target Slashed Amid Iron Ore Decline
The mining giant BHP Group (ASX: BHP) has seen its price target slashed by Freedom Broker to A$66 from A$92, a reduction of roughly 28%. The revised estimate is based on the anticipated decline in iron ore prices and the impact it will have on BHP's earnings.
The company's shares closed at A$63.78 after pulling back from their recent all-time high of A$68.77, leaving them up 39.38% year to date. The adjustment is part of a broader recalibration of ratings across the metals and mining sector following first-half reports.
Freedom Broker's analysis noted that iron ore prices held steady in the first half of 2026, but warned that the anticipated decline is now playing out. This has led the broker to lower its expectations for BHP's earnings.
The company's copper operations have become increasingly important, with copper contributing more than 50% of group underlying EBITDA for the first full financial period in the company's history. BHP produced around 2 million tonnes of copper and plans to lift output by 40% by FY35 through major projects.