BHP’s medium-term cost guidance for iron-ore and coal is better than expected and will help to underpin EPS targets into FY18 and FY19.
FY18 revenue will be up slightly to $40b, EBIT $13b with reported profit in FY18 forecast to increase 10% to $6.4b.
You're not a member! Trial today
Assuming dividends per share of $0.80, BHP is placed on a forward yield of 4%.
We see upside in BHP’s share price to $30 and suggest selling a March $29.50 call option to enhance the yield.
