It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.
Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Goldman Sachs, its analysts have reiterated their buy rating but trimmed their price target on this regional bank’s shares to $9.34. This follows the release of the bank’s half year results, which revealed cash earnings 17% ahead of the broker’s estimates. This was driven by a better-than-expected performance on bad and doubtful debts. And while Goldman has trimmed its longer term earnings estimate to reflect lower interest earning assets and net interest margin assumptions, it remains positive on its outlook and sees plenty of value in its shares. The Bank of Queensland share price ended the week at $7.99.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
A note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this pizza chain operator’s shares to $100. The broker has updated its model to take account of recent inflationary pressures and a more cautious view on near-term sales growth in Japan. This has led to a reduction in its earnings estimates for FY 2022. However, it still expects Domino’s to outperform the consensus estimate and continues to see a lot of value in its shares. The Domino’s share price was fetching $81.13 at Thursday’s close.
Pilbara Minerals Ltd (ASX: PLS)
Analysts at Citi have upgraded this lithium miner’s shares to a buy rating with an improved price target of $3.60. According to the note, the broker made the move largely on valuation grounds due to a recent pullback in its share price. In addition, Citi has bumped its lithium price forecasts higher on the belief that it could be a couple of years until the lithium market balances. The Pilbara Minerals share price ended the week at $2.96.