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:
BHP Group Ltd (ASX: BHP)
According to a note out of Macquarie, its analysts have retained their outperform rating and $57.00 price target on this mining giant’s shares. The broker believes that BHP is generating significant free cash flow thanks to sky high iron ore prices and expects this to result in generous cash returns for shareholders. And with spot prices well ahead of its forecasts, it suspects that BHP could smash expectations with its results in August. The BHP share price is currently fetching $48.67.
EML Payments Ltd (ASX: EML)
Another note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target slightly on this payments company’s shares to $3.95. Its analysts believe the market is expecting a far worse outcome from its dealings with the Central Bank of Ireland than is likely. In addition, it was pleased with its recent trading update and suspects the company will hit the top end of its guidance range. The EML Payments share price is currently trading at $3.78.
Superloop Ltd (ASX: SLC)
Analysts at Morgans have retained their add rating and lifted their price target on this telco’s shares to $1.33. This follows its announcement to undertake a capital raising to acquire the Exetel business. According to the note, the broker is pleased with its decision to acquire Exetel and sees meaningful synergies from the deal. It also believes it is positive strategically and is expecting it to boost its margins. The Superloop share price is currently trading at $1.05.