It was 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:
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BHP Group Ltd (ASX: BHP)
According to a note out of Goldman Sachs, its analysts retained their buy rating on this mining giant's shares with an improved price target of $49.10. This followed the release the Big Australian's full year results, which came in ahead of the broker's expectations. Goldman highlights that this was due to BHP's copper division, which delivered EBITDA of US$8.6 billion. This compares favourably to Goldman's US$7.7 billion estimate and was driven by a strong cost beat at South Australia copper and a revenue beat at Escondida. Overall, the broker continues to believe that BHP's shares are undervalued at current levels. Especially given its superior margins and operating performance. It also likes BHP due to its exposure to copper, which it is very bullish on. The BHP share price ended the week at $40.77.
Qantas Airways Limited (ASX: QAN)
Another note out of Goldman Sachs reveals that its analysts retained their conviction buy rating and $8.05 price target on this airline operator's shares. Goldman was pleased with Qantas' performance during FY 2024, noting that its result was in line with its estimates. And importantly, it believes the result is supportive of its bullish view. Goldman's investment thesis is based on its belief that Qantas' post-COVID transformation means that its earnings have been reset sustainably higher and that its current valuation doesn't reflect this. Its analysts feel that this was reinforced further by a second half improvement in key operating metrics. It thinks that this removes the need for a substantial uplift in customer investment. The Qantas share price was fetching $6.71 at Friday's close.
Universal Store Holdings Ltd (ASX: UNI)
Analysts at Bell Potter retained their buy rating on this youth fashion retailer's shares with an improved price target of $7.80. According to the note, the broker was very pleased with Universal Store's performance in FY 2024. It was also impressed with its strong start to FY 2025 and has upgraded its earnings forecasts and valuation to reflect this. Outside its results, the broker reiterates that it likes Universal Store due to its store roll-out and brand growth strategy. Bell Potter also expects further gross margin expansion in the near term. The Universal Store share price ended the week at $6.94.
