The S&P/ASX 200 Index (Index:^AXJO) is racing higher today as a slew of positive results lifted sentiment. It's not too late to join the party as leading brokers pick the latest ASX stocks to buy today.
One stock that Macquarie Group Ltd (ASX: MQG) is pushing is the BlueScope Steel Limited (ASX: BSL) share price.
Shares in the steel products maker jumped 3.4% to $12.77 in after lunch trade as the broker reiterated its "outperform" recommendation on the stock following its results announcement.
Better than expected profit results
BlueScope's profit performance was reasonably strong given the impact of COVID-19 with the group's ASP and Building Products divisions the big standouts.
Demand for its products in Australia held up better than many expected, particularly for residential construction.
US weakness may be reversing
However, it wasn't all good news as the group's US North Star business underperformed.
"North Star missed our expectations, however, a 5.5% decline in sales volumes in 2HFY20 was still a decent outcome given the environment," said Macquarie.
"North Star is operating at near-full capacity, with recovering auto demand key to reducing the discounting we saw in 2HFY20."
The broker's 12-month price target on BlueScope stands at $13.50 a share.
Capital raising no deterrent
While the Lynas Corporation Ltd (ASX: LYC) share price remains in a trading halt, UBS is wasting no time in encouraging investors to buy the miner when it comes back to the bourse.
Lynas shares are temporarily suspended as it finalises its $425 million capital raising and it last traded at $2.61.
The cash will be used to move part of its processing from Malaysia to Australia. This is to comply with licensing requirements in the Asian country due to environmental concerns.
Key drivers for Lynas share price
"We think the equity issue on balance is a good move as it deals with the key funding/balance sheet risk for the company," said UBS.
"But the size of the raising is larger than we anticipated and either leaves the company overcapitalised or well positioned to invest in downstream options."
The dilution from the cap raise didn't stop the broker from lifting its price target on Lynas to $3 from $2.80 a share.
UBS is bullish on the rare earth miner as its aligned to two powerful trends – the rise of electric vehicles which requires rare earths, and the move by Western countries to cut their dependency on China for the minerals.
