Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led to the release of a number of broker notes.
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:
Altium Limited (ASX: ALU)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target on this electronic design software company’s shares to $42.00. This follows news that Altium has rejected a $38.50 takeover approach from Autodesk. The broker believes the offer demonstrates the company’s ability to attract strategic partnerships. It also isn’t ruling out Autodesk coming back with a higher offer in the future to seal a deal. The Altium share price is fetching $35.47 this afternoon.
BHP Group Ltd (ASX: BHP)
A note out of Macquarie reveals that its analysts have retained their outperform rating and increased their price target on this mining giant’s shares to $61.00. According to the note, the broker made the move after increasing its earnings estimates to reflect sky high iron ore prices. Macquarie also notes that BHP stands to benefit from improving metallurgical coal prices. The BHP share price is trading at $48.74 today.
IDP Education Ltd (ASX: IEL)
Analysts at UBS have retained their buy rating but trimmed their price target on this language testing and student placement company’s shares to $28.25. According to the note, the broker is expecting COVID-19 headwinds in the key Indian market to weigh on its short term performance. It estimates that the Indian market accounts for 34% of its revenue. However, UBS anticipates a swift recovery once the crisis passes. Looking further ahead, the broker expects IDP Education to be in a stronger market position post-pandemic. The IDP Education share price is fetching $22.50 today.