Many of Australia's top brokers have been busy adjusting their recommendations following the market selloff. This has led 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 the Macquarie equities desk, its analysts have retained their outperform rating and $42.00 price target on this mining giant's shares. The broker believes that the selloff of BHP's shares following the oil price collapse has been overdone and left them trading at a very attractive level. Especially given how its Petroleum segment is only a small part of its overall earnings and iron ore prices remain high. I agree with Macquarie and would be a buyer of BHP's shares at these levels.
Orora Ltd (ASX: ORA)
Analysts at Morgan Stanley have upgraded this packaging company's shares to an overweight rating and lifted the price target on them to $3.50. According to the note, the broker believes that Orora's shares are undervalued at the current level after a sizeable decline year to date. In addition to this, it likes the company due to its capital management plans and expects the company to announce a special dividend and on-market share buyback. I think Morgan Stanley makes some good points and Orora could be worth a closer look.
REA Group Limited (ASX: REA)
A note out of UBS reveals that its analysts have upgraded this property listings company's shares all the way from a sell rating to a buy rating with a $110.00 price target. According to the note, the broker feels there are some short term risks to new listing volumes from the coronavirus outbreak. However, it appears to believe investors should look beyond this and focus on the future. I think UBS is spot on and would be a buyer of REA Group's shares with a long term view.
