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 you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:
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BHP Group Ltd (ASX: BHP)
According to a note out of Morgans, its analysts have retained their add rating but cut their price target on this mining giant's shares to $48.30. The broker has reduced its valuation to reflect the demerger of its petroleum assets. And while it notes that BHP's earnings are now more concentrated because of the demerger, it feels the move has boosted its ESG credentials. This could make BHP more attractive to global investors. The BHP share price is trading at $43.71 today.
Macquarie Group Ltd (ASX: MQG)
A note out of Ord Minnett reveals that its analysts have upgraded this investment bank's shares to a buy rating with a $218.00 price target. Ord Minnett made the move largely on valuation grounds following recent share price weakness. It also notes that the banking sector looks set to benefit from rising rates. The Macquarie share price is fetching $183.19 today.
South32 Ltd (ASX: S32)
Analysts at Citi have retained their buy rating and $5.50 price target on this mining giant's shares. This follows South32's strategy update this week, which Citi came away from continuing to feel very bullish. Particularly given how South32 has production growth, trades at a discount to its price target and on low valuation multiples. And while the broker concedes that the near term commodity demand in China is a concern, it believes the medium term outlook for key South32 metals is robust. The South32 share price is trading at $4.72 on Friday.
