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:
Bellevue Gold Ltd (ASX: BGL)
According to a note out of Goldman Sachs, its analysts have initiated coverage on this gold miner's shares with a buy rating and $2.20 price target. Goldman is feeling very positive about the gold miner's outlook. It highlights that Bellevue Gold is now largely through its initial ramp up stage. As a result, it sees the business as well positioned and attractively priced compared to mid-cap peers. Especially given the higher average grades it is achieving, its stronger margin generation, and estimated near-term free cash flow yields of ~10%. In addition, Goldman notes that it sees low-cost mill expansion and underground optionality. It feels this potentially supports further upside for the company in the medium term. The Bellevue Gold share price ended the week at $1.78.
South32 Ltd (ASX: S32)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating on this mining giant's shares with an improved price target of $4.50. According to the note, the broker has been reviewing its commodity price forecasts. Following the review, Macquarie remains very positive on a number of commodities that South32 produces. This includes aluminium, met coal, and nickel. In light of this, the broker has boosted its earnings estimates for South32 for the coming years and has named the diversified miner as its top pick among the large cap miners right now. The South32 share price was fetching $3.66 at Friday's close.
Woolworths Group Ltd (ASX: WOW)
Finally, analysts at Goldman Sachs have reiterated their buy rating on this retail giant's shares with an improved price target of $40.20. According to the note, the broker believes that concerns over margin weakness and regulatory reviews are overdone and have created a buying opportunity for investors. In respect to supermarket margins, Goldman's analysis and channel checks are pointing to resilient ~3% industry topline supermarket growth from improving volume. In addition, it sees plenty of levers for gross profit margin expansion through business model mix and margin optimisation opportunities. In fact, Goldman believes this will allow Woolworths to grow its earnings per share by a compound annual growth rate of 8.2% between FY 2024 and FY 2027. The Woolworths share price ended Friday's session at $33.79.
