Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three broker buy ratings that have caught my eye 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 the Macquarie equities desk, its analysts have retained their outperform rating and $43.00 price target on this mining giant's shares following its half year results. Although the broker felt BHP delivered a solid result, it was a touch disappointed with its softer than expected cash flows and its dividend. However, this isn't enough to put the broker off the company and it remains positive on its prospects. Especially given its aim of becoming the industry's best operator. I agree with Macquarie and feel BHP is a good option for investors looking for exposure to the resources sector.
Kogan.com Ltd (ASX: KGN)
Analysts at Credit Suisse have retained their outperform rating but trimmed the price target on this ecommerce company's shares to $6.64. The broker believes the headwinds that impacted Kogan in the first half will be only temporary and that the future remains bright. Especially if the company can leverage its massive active customer base and grow its new Marketplace platform. I think Credit Suisse is spot on and it would be worth sticking with Kogan.
QBE Insurance Group Ltd (ASX: QBE)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on this insurance giant's shares to $16.70. The broker was pleased with QBE's performance in FY 2019 and has upgraded its estimates for the year ahead. It notes that premium rates have been increasing and its efficiency program has been delivering on expectations. Overall, it believes QBE is well-placed to deliver top line growth and margin expansion. Whilst I'm not a big fan of QBE, I do think Citi makes some very good points.
