BHP‘s annual results were more or less in line with forecasts, said US bank Jefferies.
Underlying profits [EBITDA] and net debt were slightly better while the dividend met expectations.
BHP (ASX:BHP) is taking measures to grow its copper volumes (via M&A and organically), and it should benefit from strong iron ore cash flows even in a lower-price environment.
Jefferies added: “We believe the underlying value of BHP's copper business continues to be underappreciated in the markets.
“We also believe BHP's involvement in the Vicuna District with Filo and Josemaria could create significant shareholder value as this region is consolidated and developed, but these projects are still very early stage.
“At WA iron ore, volume growth most likely depends on fundamentals and prices even though BHP sits at the bottom of the cost curve.
“The risk in that market is demand, and the days of BHP operating with a price-taker mentality are over, in our view.
“It is all about 'value over volumes' now, and that should be a positive for BHP's cash flows and share price.
London-traded shares rose 0.8% to 2,097p.