It has been another busy week for many of 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 right now:
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BHP Group Ltd (ASX: BHP)
According to a note out of Macquarie, its analysts have upgraded this mining giant's shares to an outperform rating with an improved price target of $44.00. The broker made the move on valuation grounds. It notes that BHP's shares have dropped heavily recently in response to a sharp fall in iron ore prices. However, Macquarie feels that the market is now pricing in much lower iron ore prices and believes that value has now emerged in BHP's shares. In light of this, the broker thinks investors should be snapping them up while they can. The BHP share price is trading at $40.58 on Friday.
Coles Group Ltd (ASX: COL)
A note out of Bell Potter reveals that its analysts have initiated coverage on this supermarket giant's shares with a buy rating and $21.55 price target. The broker highlights that Coles has grown its earnings by a compound annual growth rate of 3.7% per annum since FY 2020. At the same time, the supermarket operator has paid out 81% of cumulative profits in dividends, achieving 4.2% annual growth in dividends. Bell Potter believes that the delivery on business improvement initiatives (Simplify & Save) and recent capital initiatives will drive continued growth in earnings and dividends through to at least FY 2027. In light of this attractive growth profile, its strong cash generation, and valuation discount to rival Woolworths Group Ltd (ASX: WOW), the broker thinks Coles is a top pick for investors today. The Coles share price is fetching $19.25 at the time of writing.
Monadelphous Group Ltd (ASX: MND)
Analysts at Citi have retained their buy rating and $16.20 price target on this engineering company's shares. This follows news that Monadelphous has been awarded a number of new construction and maintenance contracts totalling approximately $230 million. It was pleased with the news and feels that recent share price weakness has created a buying opportunity. Particularly given its belief that concerns over a slowdown in iron ore activities is overdone. Especially given near-term opportunities in replacement and sustaining capex. The Monadelphous share price is changing hands for $12.49 on Friday.
