Broker tips: BHP, Unilever, Inchcape

(Sharecast News) - RBC Capital Markets has raised its target price for BHP Group after the mining giant's stronger-than-expected first-half results, welcoming the group's accelerating copper momentum, but kept a 'sector perform' rating on the stock. On Tuesday, BHP beat consensus forecasts with EBITDA, free cash flow (FCF) and its interim dividend, alongside capital recycling through the announcement of its significant silver streaming agreement with Wheaton Precious Metals.

First-half results also included a "clearer copper growth pathway", RBC said, with guidance upgrades at Escondida and strong progress at Vicuña.

"The key takeaway is that this was not just a financial beat, it confirms accelerating copper momentum, funded by structurally advantaged WAIO FCF and disciplined balance sheet management," RBC said.

The broker raised its target for its Australia-listed shares from $51.00 to $55.00, which equates to a 2,900p level for the London-listed stock, and noted that the shares trade at 1.2 times net asset value and 6.5 times average EBITDA over FY25 and FY26, which was a "justified" premium rating compared with global peers, in its opinion.

"However, we think low near-term volume growth and elevated capex requirements (copper portfolio, and Jansen), coupled with declining iron ore prices, are set to compress FCF in the medium term, leaving us neutral on the stock," RBC said. "We continue to expect the iron ore market to weaken from spot levels, which could act as a drag on the momentum."

Analysts at Berenberg downgraded consumer goods giant Unilever from 'buy' to 'hold' on Wednesday, stating the company has, in its view, completed its transformation into "a simpler, more agile, faster-growing and more profitable business" than it was two to three years ago.

Berenberg stated that following Unilever's recent share price performance, it believes that the firm's transformation was now well reflected in the stock's valuation.

"Our FY26 EPS forecasts are 1.4% lower as we update for the recent 2025 results release and tweak our organic sales growth, currency and average cost of debt assumptions," noted Berenberg, which upped its target price on the stock from £56 to £58.40 per share.

The German bank also noted that following the stock's strong year-to-date performance, Unilever now trades on a 12-month forward price-to-earnings ratio of 19.6x - a 17% premium to its five-year average multiple.

"Relative to its global staples peers (Haleon, Beiersdorf, Colgate, Nestlé, Henkel, P&G and L'Oréal), Unilever's P/E is also 17% higher than its five-year average. This suggests the company's turnaround is now better reflected in its stock price," added Berenberg.

Inchcape shot higher on Wednesday after JPMorgan placed the shares on 'positive catalyst watch' ahead of full-year results on 3 March and hiked its price target on the stock to 880p from 800p.

"Based on our momentum tracker, we have raised our 2025/26 underlying EPS forecasts by 6%/7%, due to stronger volume growth in the Americas and Hong Kong," the bank said. "Our estimates are now 4%/5% above FY25/FY26 consensus (company-compiled) EPS."

JPM, which rates the shares at 'neutral', said positive momentum in the Americas should continue to support profitability, with volumes providing a favourable mix.

"Supportive end-markets, a slower BEV transition, measured Chinese expansion in Europe, favourable FX and lower interest rates should drive 6% profit before tax growth and 15% EPS growth in 2026," it said. "With the stock trading at 9x/8x 2026/27 P/E (JPMe) versus a trading range of 8-11x, we consider the near-term set-up attractive."