BHP Group (ASX:BHP) is simplifying its operations, while Rio Tinto (ASX:RIO) chases complex merger deals at the top of the commodity cycle, reversing investment narratives, the Australian Financial Review reported Friday, citing Morgans deputy head of research Adrian Prendergast.

BHP walked away from Anglo American pursuits, reduced execution risk on the first stage of its Jansen potash project in Canada, and flagged that its group capital expenditure will fall toward $10 billion by fiscal year 2028 to fiscal year 2030.

Meanwhile, Rio Tinto faces ongoing complexity, sustaining capital expenditure of around $7 billion annually, as well as potential merger discussions around Glencore.

Morgans retained a hold rating for BHP with a price target of AU$48.60 per share, rising from AU$47.90 per share. The investment firm also retained a trim rating on Rio Tinto with a price target of AU$142 per share, rising from AU$140 per share.

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