Australia’s top brokers have been busy adjusting their estimates and recommendations 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:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Ord Minnett, its analysts have retained their buy rating and $20.00 price target on this iron ore producer’s shares. The broker notes that iron ore prices have softened in September. However, it suspects that prices could soon rebound due to increasing steel production. This bodes well for Fortescue and could mean more generous dividends for shareholders over the near term. I agree with Ord Minnett and think Fortescue would be a top option for income investors right now.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted their price target on this airport operator’s shares to $6.66. While the broker acknowledges that it could take years before passenger numbers to recover to 2019 levels, it still believes Sydney Airport is a buy. It believes its shares are great value and a top long term option for investors. Macquarie has pencilled in a 15 cents per share dividend in FY 2021. I agree with Macquarie on this one. Travel markets will eventually return to normal, so I feel Sydney Airport could be a great buy and hold option.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Credit Suisse have upgraded this wine company’s shares to an outperform rating with a $12.30 price target. The broker made the move largely on valuation grounds after a sizeable pullback in its share price recently. In addition to this, Credit Suisse doesn’t believe the Penfolds brand image has been damaged by the anti-dumping allegations in China and believes there is pent up demand for its wines from postponed weddings and other celebrations. I think Credit Suisse makes some good points and it could be worth a closer look.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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.