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 Citi, its analysts have retained their buy rating and $48.50 price target on this mining giant's shares. The broker points out that its global commodities team has become more bullish on copper and lifted its forecast by 20% to US$12,000 per pound. This is to reflect increased demand due to the decarbonisation megatrend. In light of this, Citi has lifted its earnings estimates for the coming years. Another positive is that the broker is now forecasting an attractive ~6% dividend yield from the Big Australian's shares in FY 2025. This gives the total potential 12-month return a nice boost. The BHP share price ended the week at $43.09.
Capricorn Metals Ltd (ASX: CMM)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this gold miner's shares with an improved price target of $6.53. The broker believes that recent share price weakness has created a very attractive opportunity for investors to buy Capricorn Metals' shares on the cheap. Especially given the recent announcement of a 26% increase in ore reserves at the 100%-owned Mt Gibson Gold Project in Western Australia. Bell Potter also highlights that the company has sector leading cash generation and strong production record, which it believes means that it deserves to trade at a premium to sector average valuation metrics. The Capricorn Metals share price was fetching $4.46 at the end of the week.
QBE Insurance Group Ltd (ASX: QBE)
Analysts at Goldman Sachs have retained their buy rating and $20.90 price target on this insurance giant's shares. The broker points out that QBE has recently held a number of investor meetings. Goldman highlights that management conveyed greater confidence on the delivery of its 95% combined operating ratio (COR) in North America by 2025. This is a big positive as the lower the COR, the more profitable QBE's operations are. As a result, Goldman believes that there is now upside risk to the FY 2025 consensus group COR of 92.8%. In fact, it sees under 92.5% as possible, reflecting the improvement in North America, a North America non-core run off, and organic trends. The QBE share price ended Friday's session at $18.31.
