UBS added mining giant BHP Group to its top ASX stock picks. The bank cited a favorable outlook for copper. UBS projects copper will account for approximately 55% of BHP's forecasted 2027 earnings. UBS believes copper is entering a prolonged period of high prices.
The bank set a price target of $62 per share for BHP. The inclusion of BHP is part of a broader refresh of UBS's high-conviction list. The list also added Charter Hall and Insurance Australia Group (IAG).
The update reflects a preference for mining and industrial sectors. UBS believes these sectors have tailwinds. The bank is more cautious on banking and consumer stocks. This caution comes amid expectations of further interest rate hikes from the Reserve Bank of Australia.