BHP added to Morgans High-Conviction stock picks
Stockbroker Morgans Financial has added BHP to their High-Conviction Stocks this month as Senior Analyst Adrian Prendergast retains an ‘Add’ rating on the stock. “The current bout of risk off has created an opportunity to add BHP to portfolios at a low point in its recent trading range. The company has robust cash flow and a capable balance sheet, while a key driver for recovering earnings will be the oil price,” they said in a recent update. They expect FY17 to be “yards apart” from FY16, with free cash flow almost doubling from $4.5b to nearly $8b. They say that BHP has a “superior combination of commodity and market exposures within resources,” helping to defend its healthy margins. In the video below, Adrian Prendergast explains further and provides their price target for the company.
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