After integrating OZ Minerals into forecasts for BHP Group, Morgan Stanley notes most of the synergies are long-dated and the target only rises to $41.75 from $41.50.

Future dividend payouts will be restrained by net debt at the top-end of target and the overhang from the company's 50% exposure to Samarco's court case, in the broker's view.

The Equal-weight rating is unchanged. Sector view is Attractive.

Sector: Materials.

Target price is $41.75.Current Price is $43.27. Difference: ($1.52) - (brackets indicate current price is over target). If BHP meets the Morgan Stanley target it will return approximately -4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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