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:
Altium Limited (ASX: ALU)
According to a note out of the Macquarie equities desk, its analysts have upgraded this design software company's shares to an outperform rating with a $37.50 price target. The broker made the move after Altium's shares fell heavily over the last few weeks, leaving them trading at what it believes is an attractive level. Especially given its strong medium term earnings growth potential and strategic opportunities. I agree with Macquarie on Altium and feel it would be a great long-term option.
BHP Group Ltd (ASX: BHP)
Analysts at Goldman Sachs have retained their buy rating but trimmed their price target on this mining giant's shares to $39.00. According to the note, the broker has been looking into the oil price collapse and its impact on BHP's financial performance. Goldman estimates that Petroleum will account for 10% to 13% of its EBITDA in FY 2021. And while falling oil prices will impact its bottom line, it expects this to be offset partially by lower fuel costs. I think Goldman is spot on with BHP and it could be a great option after its sizeable decline.
DEXUS Property Group (ASX: DXS)
A note out of Morgan Stanley reveals that its analysts at upgraded this property company's shares to an overweight rating and increased the price target on them to $13.00. According to the note, the broker believes DEXUS is a good option for investors during these volatile times. This is because of its leases having fixed increases and favourable conditions in the Sydney office market. I think Morgan Stanley makes some good points and DEXUS could be worth considering. Especially for income investors given its +4% distribution yield.
