It has been another busy week for Australia's top brokers. This has led to the release of a 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:
Aussie Broadband Ltd (ASX: ABB)
According to a note out of Ord Minnett, its analysts have upgraded this broadband provider's shares to a buy rating with a trimmed price target of $4.16. This follows a selloff on Thursday in response to news that its white label agreement with Origin Energy Ltd (ASX: ORG) has been terminated after the two parties failed to agree on terms. While the broker has reduced its earnings estimates to reflect the unexpected loss of the contract, it still believes the company can continue to grow at a very strong rate. In fact, it is expecting double-digit earnings per share growth long into the future. As a result, it believes this weakness has created a buying opportunity. The Aussie Broadband share price is trading at $3.54 on Friday afternoon.
BHP Group Ltd (ASX: BHP)
A note out of Citi reveals that its analysts have upgraded this mining giant's shares to a buy rating with an unchanged price target of $46.00. The broker made the move on valuation grounds follow a rather sharp pull back in the Big Australian's share price in recent weeks. It feels this has dragged its shares down to an attractive level for investors to snap them up today. This certainly could be the case for income investors, with Citi forecasting dividend yields of around 6% in both FY 2024 and FY 2025. The BHP share price is fetching $42.38 today.
Bega Cheese Ltd (ASX: BGA)
Analysts at Bell Potter have retained their buy rating and $5.00 price target on this diversified food company's shares. The broker believes that the recent ABARE commodities report has been a positive for Bega Cheese's ingredients business and feels that this upside potential is underappreciated by the market. It notes that farmgate pricing could be "a game changer" for the company. This is because if prices fall as much as forecast, it would represent a $55 million to $60 million reduction in milk costs for the company. In addition, it highlights that its shares are still trading at a material discount to global dairy and FMCG peers. The Bega Cheese share price is trading at $4.05 on Friday.
