It has been another busy week for many of 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 right now:
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BHP Group Ltd (ASX: BHP)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $47.10 price target on this mining giant's shares. This follows the release of a first quarter update earlier this week which was a touch ahead of consensus estimates. Morgan Stanley was particularly pleased with copper and thermal coal volumes, noting that they were better than it was forecasting. And while BHP's metallurgical coal operations disappointed the broker, this isn't enough to change anything for its analysts. They continue to see a lot of value in the Big Australian's shares right now. The BHP share price is trading at $42.17 on Friday.
Challenger Ltd (ASX: CGF)
A note out of Bell Potter reveals that its analysts have initiated coverage on this annuities company's shares with a buy rating and $8.25 price target. Bell Potter highlights that Challenger has a focus on providing financial security for retirement. It believes this means that it is well placed for an ageing population, with products for those accumulating in the approach to retirement, and those decumulating in retirement. In addition, it expects this to be supported by growth in the superannuation system. Bell Potter points out that the system is expected to grow from $3.9 trillion currently to $11 trillion over the next 20 years. The Challenger share price is fetching $6.30 at the time of writing.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Goldman Sachs have retained their buy rating and $15.20 price target on the wine company's shares. According to the note, the broker was impressed with the Penfolds owner's positive start to FY 2025. Goldman notes that Treasury Wine's organic group net sales revenue (NSR) was up in the double-digits year on year during the first quarter. This is comfortably ahead of the broker's first half revenue forecast of 3% growth. It was also pleased to see that Penfolds momentum was strong, led by Asia and Australia. This includes its China performance being in-line with expectations, including through the Mid-Autumn Festival period. The Treasury Wine share price is trading at $11.71 today.
