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:
According to a note out of Goldman Sachs, its analysts have retained their buy rating and lifted the price target on this mining giant’s shares to $38.20. It likes BHP due to its attractive valuation and commodity mix. It also notes that it prefers BHP to fellow mining giant Rio Tinto Limited (ASX: RIO) due to its stronger operating performance and more growth options in coal and oil. It expects these to create value for shareholders in the long term. I agree with Goldman and would be a buyer of BHP shares.
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $208.00 price target on this hearing solutions company’s shares. It has been looking at an update from one of its main rivals and notes that it is indicating a quicker than expected recovery by the hearing care market. And while it still expects Cochlear to report a sharp reduction in unit sales in the second half, it sees upside risk to expectations. I think Morgan Stanley makes some good points and continue to believe Cochlear shares would be great long term options.
Analysts at Ord Minnett have retained their buy rating and lifted the price target on this buy now pay later provider’s shares to $5.95. Ord Minnett was impressed with Sezzle’s update this week and has upgraded its estimates to reflect its stronger than expected performance. Earlier this week Sezzle reported underlying merchant (UMS) sales of US$188 million (A$272.3 million) for the second quarter. It also provided full year guidance for an UMS annualised run rate of US$1 billion. While it isn’t my first (or second) pick in the industry, I do think it is worth keeping a very close eye on its progress.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.