Morgans increases unit cost assumptions across iron ore and aluminium exposed miners and lowers forecast prices to allow for a rising US dollar and fears of a US/global recession.

However, the broker feels share prices have largely factored-in these variables and sees good buying opportunities for some stocks under its Mining sector coverage.

BHP Group and South32 are Morgans top two picks among diversified miners.

In addition to BHP's move on OZ Minerals ((OZL)), the analyst expects the group to remain aggressive on M&A, particularly relating to copper assets.

The target price falls to $47.40 from $48.40. Add.

Sector: Materials.

Target price is $47.40.Current Price is $40.06. Difference: $7.34 - (brackets indicate current price is over target). If BHP meets the Morgans target it will return approximately 15% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena