It has been another busy week for Australia's top brokers. This has led to the release of a large number of broker notes.
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:
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Ansell Limited (ASX: ANN)
According to a note out of Citi, its analysts have retained their buy rating and increased their price target on this safety products company's shares to $46.50. The broker has upgraded its earnings estimates to reflect the benefit from COVID lasting longer than previously expected. Citi expects this to ultimately lead to Ansell being in a net cash position by the end of FY 2023. This will then give the company the balance sheet capacity to consider earnings accretive acquisitions or buyback. The Ansell share price was trading at $36.30 at Friday's close.
BHP Group Ltd (ASX: BHP)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $54.00 price target on this mining giant's shares. Macquarie has lifted its oil and gas price estimates to reflect a lengthening cycle. The broker expects an average Brent crude oil price of US$66 a barrel over the next 12 months. And while it acknowledges that the company is divesting its oil and gas operations, this is still relevant as shareholders will be given shares in the new entity. The BHP share price ended the week at $41.25.
ResMed Inc. (ASX: RMD)
Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this medical device company's shares to $44.00. This follows the company's investor day event earlier this week. The broker notes that management highlighted its strong competitive advantage this year thanks to a significant product recall by rival Philips. The broker was also pleased with its plans to expand patient reach and its new partnership with CVS Health. Credit Suisse expects this to support above industry growth. The ResMed share price was fetching $40.17 at Friday's close.
