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 ASX shares are in the buy zone:
Pilbara Minerals Ltd (ASX: PLS)
According to a note out of Macquarie, its analysts have retained their outperform rating and $1.50 price target on this lithium miner’s shares. This follows the announcement of a potential joint venture with Calix Ltd (ASX: CXL) which is exploring the possibility of the construction of a facility that will process spodumene into a mid-stream lithium product. In addition, the company has revealed that it will soon make a decision on whether to restart the Ngungaju plant or the Altura project. The Pilbara Minerals share price is currently fetching $1.22.
Suncorp Group Ltd (ASX: SUN)
Analysts at UBS have retained their buy rating and lifted their price target on this insurance and banking giant’s shares to $12.00. According to the note, the broker was pleased with Suncorp’s general insurance update and its target of achieving margins of 10% to 12% by FY 2023. And while it expects the majority of the improvement to come late on, the broker still believes its shares look cheap at the current level. The Suncorp share price is trading at $10.44 today.
Woolworths Group Ltd (ASX: WOW)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $44.50 price target on this retail conglomerate’s shares. This follows confirmation that the company will be going ahead with its Endeavour demerger. Macquarie expects the spin off to materially improve its balance sheet, given that the majority of its debt has historically been with the drinks unit. This will be supportive of up to $2 billion in capital returns. Overall, it believes Woolworths has become a more attractive business. The Woolworths share price is trading at $40.83 this morning.