Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.
Here’s why brokers think investors ought to buy them next week:
BHP Group Ltd (ASX: BHP)
According to a note out of Goldman Sachs, its analysts have upgraded this mining giant’s shares to a buy rating with a $41.90 price target. Goldman decided to upgrade its shares after reviewing BHP’s five key greenfield oil projects. After a period of decline, the broker beliefs these projects could boost its oil production by upwards of 50% to 180 Mmboe by FY 2030. Furthermore, the broker continues to expect iron ore prices to stay higher for longer due to a potential deficit in 2020. I agree with Goldman on BHP and would also class its shares as a buy.
Evolution Mining Ltd (ASX: EVN)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this gold miner’s shares all the way from an underperform rating to an outperform rating and increased the price target on them to $5.40. According to the note, its analysts made the move after increasing their gold price forecasts for both the near and long term. The broker notes that this will be a big positive for Evolution due to the high margins of its operations. If you’re confident on the price of the precious metal increasing, then I think Evolution is well worth considering.
Transurban Group (ASX: TCL)
Analysts at Ord Minnett have retained their buy rating but lowered the price target on this toll road operator’s shares slightly to $16.00. According to the note, the broker has trimmed its price target to reflect a more subdued than expected economic outlook. However, the broker continues to rate its shares as a buy and notes its positive growth profile. I think Transurban would be a great option for income investors right now. Its FY 2020 distribution guidance of 62 cents per security implies a 4.25% distribution yield based on its last close price.
As well as BHP, Evolution, and Transurban, I think these high quality shares would be great options at their current prices.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.