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 but cut their price target on this mining giant’s shares to $58.00. This follows the release of BHP’s full year results which revealed a profit result in line with its expectations and a dividend ahead of them. Macquarie notes that this has been overshadowed by its oil and gas demerger and its plan to end its dual listing. Nevertheless, the broker remains positive on BHP and sees value in its shares at the current level. The BHP share price is trading at $47.94 today.
Breville Group Ltd (ASX: BRG)
A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this appliance manufacturer’s shares to $34.00. Given the multiples its shares trade on and management’s cautious outlook, the broker wasn’t surprised that Breville’s shares tumbled following its results release. However, it appears to believe this is a buying opportunity and sees opportunities for multi-year double-digit organic revenue growth. It also notes that optionality exists around further new market expansions and acquisitions. The Breville share price is fetching $30.38 today.
Westpac Banking Corp (ASX: WBC)
Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this banking giant’s shares to $29.93. This follows the release of the bank’s third quarter update earlier this week. According to the note, Westpac is trading in line with the broker’s expectations for the second half. Another positive was news that the Westpac Board is considering a return of capital. Goldman suspects that the bank could announce a $5 billion capital return via an off-market buyback with its full year results. The Westpac share price is trading at $25.90 today.