Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

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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:

BHP Group Ltd (ASX: BHP)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this mining giant's shares with a slightly reduced price target of $49.20. Goldman Sachs has been running the rule over the mining sector ahead of the release of quarterly updates this month. It believes BHP will deliver a reasonably solid quarterly update. For example, the broker expects copper and metallurgical coal production to increase quarter on quarter. But the main reasons the broker is positive are BHP's attractive valuation, its optionality with a +US$20 billion copper pipeline and strong production growth, and its robust free cash flow generation. The BHP share price was trading at $44.35 on Friday.

Mesoblast Ltd (ASX: MSB)

A note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this cellular medicines developer's shares with an increased price target of $1.40. Bell Potter points out that the FDA has informed Mesoblast that available clinical data from a Phase 3 study for children with steroid refractory acute graft versus host disease appears sufficient to support a resubmission of the Biological Licence Application for its Remestemcel product. It believes the timing of the correspondence is no coincidence. The broker highlights that there is refreshed leadership at the newly formed Office of Therapeutic Products at the FDA. In light of this, its analysts have renewed confidence for a prospective approval of Remestemcel later this year. It also feels that a first approval may represent a gateway to a series of label expansions in the ensuing period. The Mesoblast share price was fetching 86.5 cents at the end of the week.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at UBS have retained their buy rating on this wine giant's shares with an improved price target of $15.25. This follows confirmation that the Chinese Ministry of Commerce (MOFCOM) is removing tariffs from Australian wine imports into China. According to the note, UBS was pleased with the news and believes that Treasury Wine's shares now deserve to trade on higher earnings multiples. Especially given that this news increases its addressable market. Its analysts have also lifted their earnings estimates to reflect the news and higher margin assumptions for its premium wine. The Treasury Wine share price ended the week at $12.86.

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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