With many brokers taking a well-earned break over the holiday period, broker notes are few and far between right now.
In light of this, I thought I would take a look at a few that have been released over the last few weeks that remain very relevant today.
Three buy ratings that you might want to pay attention to are listed below:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this banking giant's shares to $26.00. Morgans notes that APRA will remove dividend restrictions on the banks from 2021 and expects this to result in ANZ lifting its dividend payout ratio to upwards of 70% in the coming years. As a result, the broker is forecasting a $1.27 per share dividend in FY 2021 and a $1.50 per share dividend in FY 2022. Which, based on the latest ANZ share price of $23.07, will mean dividend yields of 5.5% and 6.5%, respectively, over the next two years.
BHP Group Ltd (ASX: BHP)
A note out of Ord Minnett reveals that its analysts have retained their buy rating and $50.00 price target on this mining giant's shares. According to the note, the broker has lifted its forecasts for a number of commodities. It feels this bodes well for BHP in 2021 and has increased its estimates accordingly. Ord Minnett is now forecasting a fully franked ~$2.39 dividend in FY 2021. Based on the current BHP share price of $43.14, this represents a forward 5.5% dividend yield.
Zip Co Ltd (ASX: Z1P)
Analysts at Morgans have retained their add rating but reduced their price target on this buy now pay later provider's shares slightly to $8.89. According to the note, the broker reduced its price target to reflect the dilution caused by Zip's recent $150 million equity raising. Nevertheless, Morgans remains positive on the company's prospects and notes that the funds will be used partly to support its growth in the key US market. It appears happy with this, particularly given management's update which revealed that Zip's US business more than tripled its transaction value in the country during November. The Zip share price is trading at $5.37 on Thursday.
