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:
Image source: Getty Images
Gold Road Resources Ltd (ASX: GOR)
According to a note out of Bell Potter, its analysts have retained their buy rating on this gold miner's shares with an improved price target of $3.20. Bell Potter highlights that Gold Road has received a takeover offer from NYSE-listed Gold Fields. It suspects that the first offer, which has been rejected, is unlikely to be the best offer, and that Gold Fields' actions might force Gold Road back to the negotiating table. Bell Potter also feels that the gold miner's share price suggests that the market is not convinced that a transaction is likely. As a result, it feels that this leaves a potential return for investors with more optimism. The Gold Road share price ended the week at $2.93.
Pro Medicus Limited (ASX: PME)
Another note out of Bell Potter reveals that its analysts have retained their buy rating on this health imaging technology company's shares with a lowered price target of $280.00. According to the note, the broker has been reviewing the timing of new contract installations. This has led Bell Potter to reduce its revenue and earnings forecasts for the near term. And while Bell Potter remains very positive on Pro Medicus, it concedes that due to exceptionally high levels of new work and potential for delays on installations, there is more scope than at any time in the recent past for share price volatility from earnings updates. The Bell Potter share price was fetching $201.80 at Friday's close.
Woolworths Group Ltd (ASX: WOW)
Analysts at Goldman Sachs have retained their buy rating and $36.10 price target on this supermarket giant's shares. According to the note, the broker wasn't fazed by the release of the ACCC's supermarkets inquiry final report. Goldman highlights that the final report included 20 recommendations by the competition regulatory. However, on an initial read, it does not expect these recommendations to have a material impact on Woolworths' existing operations. As a result, the broker believes that the report will reduce the regulatory overhang for Woolworths shares, which has weighed on investor sentiment over the last 14 months. The Woolworths share price ended the week at $29.78.
