市场见解

ASX 200 resource share upgraded to ‘overweight’ on LSE by Morgan Stanley

Iron ore prices remain at near record highs despite Chinese government efforts to deflate them.
The post ASX 200 resource share upgraded to ‘overweight’ on LSE by Morgan Stanley appeared first on The Motley Fool Australia. –

S&P/ASX 200 Index (ASX: XJO) resource shares have been enjoying the tailwinds of soaring commodity prices.

While metals like gold, copper and iron ore have slipped from their multi-year (or even record) highs, they remain well above where they were trading this time last year.

For example, iron ore, Australia’s top export earner, is still trading for US$207 per tonne.

And that’s helped convince Morgan Stanley (NYSE: MS) to upgrade its outlook for an ASX 200 resource share that’s listed on multiple international exchanges.

In this instance, the upgrade comes from Morgan Stanley’s London office.

What international ASX 200 resource share did Morgan Stanley upgrade?

Morgan Stanley already has an overweight rating on ASX 200 listed BHP Group Ltd (ASX: BHP). Those shares, obviously, trade on the Australian Securities Exchange.

However, BHP shares are listed on major exchanges across the world, including the London Stock Exchange (LSE) where it’s listed as 矿业及能源 - BHP (LON: BHP). And yesterday (overnight Aussie time), Morgan Stanley upgraded BHP Group PLC to overweight.

As the Australian Financial Review notes, London office analyst Alain Gabriel reckons BHP shares offer “generous capital returns“.

Part of his bullishness on BHP is based on today’s iron ore prices holding, in which case Gabriel forecasts “it’s trading on a financial 2022 free cashflow yield of 23 per cent. Even at base case forecasts that’s 14 per cent”.

According to Gabriel (quoted by the AFR):

Shares have underperformed peers YTD by an average of 11 per cent and are implying a [long-term] iron ore price of $US71 a tonne versus a spot price of $US207 a tonne.

Gabriel upped his price target to 2,360 pence, up from 2,110 pence.

BHP PLC closed yesterday at 2,065 pence, implying a 14% potential upside.

A word on international listings

It’s worth noting that BHP shares don’t move identically in the different exchanges where the company is listed. Some of that’s due to currency fluctuations, and some on the demand dynamics in any given market.

However, BHP’s London and Aussie listed shares do tend to move rather closely.

Over the past 5 days, for example, BHP’s London shares have lost 2.1%, while on the ASX 200 they’re down 2.2%.

Going back a full year, the difference is larger, with BHP shares gaining 23% on the LSE while they’ve gained 33% on the ASX 200.

The post ASX 200 resource share upgraded to ‘overweight’ on LSE by Morgan Stanley appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

1 social media stock likely to thrive in a reopening economy

Here’s why the BHP (ASX:BHP) share price is pushing higher today
5 things to watch on the ASX 200 on Wednesday

2 ASX dividend shares with attractive fully franked yields

Why are blue-chip ASX 200 shares selling off today?

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!