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 broker 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 Morgans, its analysts have upgraded this mining giant's shares to an add rating with a $36.46 price target. The broker made the move on the belief that recent market volatility has led to BHP's shares dropping to a level which offers a lot of value to investors. It also upgraded the shares of Rio Tinto Limited (ASX: RIO) to an add rating for the same reason. I agree with Morgans on both and feel they could be good options for investors looking for exposure to the resources sector.
Breville Group Ltd (ASX: BRG)
Analysts at UBS have upgraded this appliance manufacturer's shares to a buy rating with an increased price target of $22.70. According to the note, the broker believes that Breville deserves to trade at a premium to the market due to its quality and strong growth potential. UBS has forecast 14% compound annual growth from the company's Global Product segment from FY 2020 to FY 2023. It also sees opportunities for the company to accelerate its growth through direct distribution expansion into Asia or the Middle East. I think Breville could be worth a closer look when the market volatility subsides.
Crown Resorts Ltd (ASX: CWN)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this casino and resorts operator's shares to an outperform rating with an $11.95 price target. According to the note, the broker made the move on valuation grounds after a sizeable pullback in its share price over the last six weeks. Whilst Macquarie acknowledges that the coronavirus outbreak is likely to weigh on VIP visitor numbers in the short term, it expects this to be only temporary. It also notes that the company has the flexibility to undertake capital management initiatives next year. Whilst I think Macquarie makes some great points, I intend to hold off until the coronavirus outbreak is over and travel and tourism markets return to normal.
