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It’s been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.
Three broker purchase reviews that have caught my eye are summarized below. Here’s why brokers think these ASX stocks are in the buy zone:
According to a note out of Macquarie, its analysts have preserved theirs surpass rating and $ 56.00 price target on this mining giant’s shares. While investors have focused heavily on falling iron ore prices, Macquarie points out that strong coal prices support earnings and cash flow. With respect to the latter, the broker estimates that its shares trade at a free cash flow dividend of ~ 20%. This should support generous returns. The BHP stock is currently trading at $ 37.83.
Pilbara Minerals Ltd. (ASX: PLS)
One more note out of Macquarie reveals that its analysts have kept theirs surpass rating and $ 2.80 price target on this lithium mining stock. This follows the news that Pilbara Minerals has commenced commissioning of the Ngungaju plant acquired from Altura Mining. It has been in a state of care and maintenance since its acquisition. Macquarie notes that this comes at a time when spot lithium prices in China remain strong and may support better-than-expected earnings. Pilbara Minerals shares are trading at $ 1.96 today.
Sonic Healthcare Limited (ASX: SHL)
Analysts at Morgan Stanley have kept theirs overweight rating and $ 45.50 price target on this healthcare company shares. According to the memo, the broker has been looking at an update from its European peer, Synlab. It notes that Synlab has upgraded its guidance to reflect stronger than expected COVID-19 test needs. Morgan Stanley believes that this bodes well for Sonic and creates an upward risk for its earnings estimates for the financial year 2022. The Sonic share is trading at $ 39.85 today.