Southern Silver Exploration Corp. (TSXV: SSV, SSEV: SSVCL, OTCQX: SSVFF)
Southern Silver, a low-risk junior development company with substantial upside potential that is emerging as one of the premier Ag-Pb-Zn companies in Mexico
Recently, BHP Group Ltd (ASX: BHP) has shown strong share price performance. Since rebounding from its 12-month low of A$35.52, the stock had risen to A$60.38 as of Friday. The core question on investors’ minds is whether this rally has peaked or if there is still room for further upside.
In a research report released this week, analysts at Morgan Stanley (MS) pointed out that BHP is well-positioned to benefit from what the firm calls “structural copper demand growth,” while its iron ore business is also performing well.
Copper demand is a key factor driving further share price growth for BHP. Over the past decade or more, BHP has consistently focused on copper as a key growth area. Morgan Stanley noted that in addition to demand from the green transition, the booming construction of data centers is emerging as a new driver. The report states: “Copper is the primary material beneficiary of data center growth. Power distribution equipment accounts for the majority of copper usage in data centers, with industry estimates suggesting that about 75% of copper demand in data centers is related to electrical infrastructure (cables, busways, connectors, and grounding systems). Against an already tight supply backdrop, the rise of AI and data center construction provide additional support for an already stretched copper market.”
Morgan Stanley expects copper demand from data center construction to increase to approximately 760,000 tonnes in 2026 and further to 1.1 million tonnes by 2027. The report adds: “From a growth perspective, data center demand is already considerable: the year-on-year increase of about 250,000 tonnes in 2026 alone accounts for roughly 26% of total copper demand growth. Under a high-demand scenario, by 2027, data centers could account for 4.9% of global copper demand, approaching the roughly 5.1% share of electric vehicles.”
Morgan Stanley also noted that copper supply disruptions have already pushed up prices this year. The analyst team believes that BHP’s expansion plans for its copper mines in South Australia are a positive development. Morgan Stanley has set a target price of A$67.50 for BHP. The company’s current dividend yield is 3.15%. BHP’s market capitalization is approximately A$315.4 billion.
Overall, Morgan Stanley holds a clearly bullish stance on BHP. Supported by structural growth in copper demand—particularly the new demand stemming from data center construction—and BHP’s own copper mine expansion plans, BHP is well-positioned to continue benefiting from major global trends such as decarbonization, electrification, and AI. Despite disruptions on the copper supply side, BHP’s high-quality asset portfolio and clear growth trajectory suggest further upside for its share price. Morgan Stanley’s target price of A$67.50 represents a premium to the current price, reflecting the firm’s confidence in BHP’s future performance.
