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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:
Bega Cheese Ltd (ASX: BGA)
According to a note out of Bell Potter, its analysts have retained their buy rating on this diversified food company’s shares with an improved price target of $5.35. The broker has been looking at recent movement in indicators for the branded and bulk business as well as farmgate milk prices. While this has resulted in an earnings downgrade for FY 2024, it has lifted its earnings estimates for the next two years. In light of this, the broker estimates that Bega Cheese is trading at around 10x FY 2025 EBITDA. It notes that this is a reasonable discount to its 10-year average of 12.3x forward EBITDA. And with the broker feeling confident about Bega Cheese’s five-year outlook, it thinks this has created a buying opportunity for investors. The Bega Cheese share price is trading at $4.41 on Friday afternoon.
A note out of Citi reveals that its analysts have retained their buy rating and $48.50 price target on this mining giant’s shares. Citi notes that its global commodities team has lifted its copper forecast by 20% to US$12,000 per pound to reflect increased demand due to the decarbonisation megatrend. In light of this, the broker has lifted its earnings estimates for the coming years. In addition, Citi is now forecasting an attractive 6%+ dividend yield from the Big Australian’s shares in FY 2025, boosting the total potential return further. The BHP share price is fetching $43.14 at the time of writing.
Analysts at Morgan Stanley have retained their overweight rating and $17.50 price target on this location technology company’s shares. According to the note, the broker has been looking into the potential of Life360’s recently announced advertising business. It highlights that Lyft Inc (NASDAQ: LYFT) has also announced similar ambitions. And given how ride sharing and location technology have similarities, it believes Lyft’s targets can be a guide to see what is possible for Life360. The good news is that the broker believes that Life360 can generate significant revenue from its advertising business even if it penetrates a much smaller portion of its massive user base compared to Lyft. The Life360 share price is trading at $15.02 today.