Its been a volatile quarterly reporting season with unpredictable price action for many S&P/ASX 200 Index (ASX: XJO) shares.
Big brokers have run the ruler over recent quarterly updates and think these ASX 200 shares might be worth a look at.
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Buy-rated ASX 200 shares
Nickel Mines Ltd (ASX: NIC)
The Nickel Mines share price plunged 12% on Tuesday after its third-quarter update revealed financial and operational weakness across the board.
Citi has weighed in on the results, citing its December quarter product of 10.07kt was 4% below the broker expectations. Cash costs of US$3,683/t were also 7% higher than what was expected. Despite the misses, Citi was neutral rated in Nickel Mines shares with a $1.50 target price.
Elsewhere, Credit Suisse and Macquarie remained bullish on the nickel producer, rating its shares as outperform with a respective $1.50 and $1.30 target price.
Credit Suisse believes the company's structurally low cost position should sustain the company's margins and cash flows under a range of nickel price scenarios. While Macquarie took a more long-term view, stating the company is set to double production over the next three years.
Despite the positivity from brokers, Nickel Mines share price fell another 4.87% to $1.08 today.
Reliance Worldwide Corporation Limited (ASX: RWC)
It was a volatile trading session for Reliance Worldwide on Tuesday following a positive quarterly trading update. Its shares surged almost 10% at market open, then rolled over into negative territory before clawing back to close 5% higher. Reliance shares are currently sitting at 2-year highs of $5.08.
Credit Suisse was impressed with the quarterly results, citing March quarter trading was ahead of forecasts in all regions. The broker increased its estimates for net profit in FY21 by 8% and FY22 by 4%. It retained an outperform rating and raised the target price from $5.00 to $5.40.
Most brokers were buy-rated on Reliance Worldwide with the exception of Morgan Stanley. While still positive on the quarterly update, the broker is concerned about its growth trajectory when housing and repair tailwinds come to an end. It retained an equal-weight rating with a $4.40 target price.
South32 Ltd (ASX: S32)
The South32 share price has been a steady gainer since the initial COVID-19 selloff in March last year. Its shares nudged 1% higher on Tuesday after releasing its March quarterly results.
South32 shares were met with 5 broker buy ratings on Wednesday, with an average target price of $3.26. The bullishness from brokers was largely driven by the strength in nickel, manganese and silver prices.
The South32 share price has climbed to a 16-month high just shy of $3.00.
