Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
BHP Group Ltd (ASX: BHP)
According to a note out of the Macquarie equities desk, it has held firm with its outperform rating on this mining giant's shares. However, it has trimmed its price target down slightly to $41.00 following the release of the miner's full year results. BHP's result fell short of Macquarie's estimates due to its higher costs. And although the company has guided to higher than expected costs in FY 2020, the broker expects favourable iron prices to make up for this. I agree with Macquarie on BHP and think it would be a great option for investors looking for exposure to the mining sector.
Lendlease Group (ASX: LLC)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on Lendlease's shares to $17.90 after its full year earnings came in ahead of its estimates. According to the note, the broker has upgraded its earnings estimates in response to its improved outlook from a record pipeline and lower engineering losses. I think Citi is spot on and feel Lendlease would be a good option at the current level.
Sonic Healthcare Limited (ASX: SHL)
Analysts at Morgans have retained their add rating and increased the price target on this healthcare company's shares to $31.00 following its full year results release. According to the note, the broker was pleased with Sonic's result and its guidance for the year ahead. It believes this could even prove to be conservative due to its organic growth and strong balance sheet that could support potential acquisitions. Whilst it isn't my favourite option in the healthcare sector, I do think it could be worth considering.
