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 S&P/ASX 200 Index (ASX: XJO) are in the buy zone:
BHP Group Ltd (ASX: BHP)
According to a note out of Credit Suisse, its analysts have upgraded this mining giant’s shares to an outperform rating with a $39.00 price target. The broker thinks now is an opportune time to invest in the company’s shares. It likes BHP due to its attractive portfolio of projects. In addition to this, it expects the company to offload its thermal coal business and return the proceeds to shareholders thanks to its strong balance sheet. I agree with Credit Suisse and think BHP would be a great option for investors in the current environment.
Flight Centre Travel Group Ltd (ASX: FLT)
Analysts at Morgans have upgraded this travel agent giant’s shares to an add rating with a $13.00 price target. According to the note, the broker expects Flight Centre to record heavy losses this year and in FY 2021. However, it is confident the company has raised enough capital to see it through the coronavirus crisis. Furthermore, based on its forecasts for FY 2022, the broker feels its shares are trading at an attractive level. Whilst I agree that Flight Centre looks good value for patient investors, I would prefer to wait and see how things develop in the coming months.
PolyNovo Ltd (ASX: PNV)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but cut the price target on this medical device company’s shares to $2.60. According to the note, PolyNovo’s sales during the March quarter fell short of its expectations. However, with its funding now sorted and its business well-positioned, the broker remains positive on the company’s prospects. I think Macquarie makes some good points and PolyNovo could be worth a closer look.
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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 Flight Centre Travel Group Limited. 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.