Berenberg downgraded BHP Group (BHP) to Sell from Hold with an unchanged price target of $44. The firm believes the company’s capex has moved structurally higher and there is upward pressure on capex spend. It believes BHP could raise its spending outlook into the medium term. In addition, the company’s “expensive” dividend is now no longer covered by its falling free cash flow, which placing further pressure on net debt, contends Berenberg.
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