With earnings season gathering pace, brokers across Australia have been kept especially busy this week.
This has led to a large number of broker notes hitting the wires. Three that caught my eye are summarised below. Here's why these shares have been given buy ratings:
BHP Group Ltd (ASX: BHP)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on this mining giant's shares to $39.00. Although Macquarie expects BHP's half year results to be a touch softer than initially expected due to the underperformance of its copper business, it remains optimistic on the future. Especially after iron ore prices surged higher following the Vale dam disaster in Brazil. The broker believes its shares are trading at an attractive level and I completely agree.
National Australia Bank Ltd (ASX: NAB)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and increased the price target on this banking giant's shares to $30.95 following its leadership changes and first quarter update. According to the note, the broker was pleased with its update. Particularly with its better than expected expense performance. Goldman believes this reaffirms the cost opportunity for the bank. Furthermore, with its shares trading close to five year lows across numerous valuation metrics, it believes its shares are good value. I agree with Goldman on this and think it is worth buying NAB shares if you don't already have exposure to the banks.
REA Group Limited (ASX: REA)
Analysts at Citi have retained their buy rating and $105.00 price target on this property listings company's shares following the release of its half year results. According to the note, REA Group's result was in line with the broker's expectations. And while it notes that management expects revenue growth to slow in the second half due to the Federal election, it believes this is only temporary and remains confident that it will bounce back in FY 2020. I think Citi is spot on with this one and agree that its shares are in the buy zone today.
