It was another busy week for 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:
According to a note out of Goldman Sachs, its analysts have retained their buy rating on this mining giant's shares with a slightly improved price target of $47.40. This follows the release of a half year result that was in-line with expectations last week. Goldman Sachs notes that it was particularly pleased with the performance of BHP's copper operations, which delivered EBITDA ~6% above expectations. This was thanks partly to a cost beat at Escondida, Spence and South Australia. In light of this solid first half, the broker remains very positive on BHP and sees value in its shares at current levels. It highlights that they are currently trading at ~0.8x NAV and ~6x forward EBITDA, which are comfortably below 25-year averages. The BHP share price ended the week at $41.26.
A note out of Bell Potter reveals that its analysts have retained their buy rating and $3.00 price target on this lithium miner's shares. This follows the release of Pilbara Minerals' half year results last week. Bell Potter points out that the company revealed a sizeable cash burn during the six months due to weak lithium prices and significant capex. However, it believes this is the peak of the current capex cycle for its large-scale approved development pipeline. As a result, it believes the company will return to positive free cash flow generation in FY 2026. Particularly given its belief that potential supply shortfalls could boost lithium prices in the near future. The Pilbara Minerals share price was fetching $2.08 at Friday's close.
Analysts at Citi have retained their buy rating on this online furniture and homewares retailer's shares with an increased price target of $21.10. According to the note, Citi was impressed with Temple & Webster's performance during the first half of FY 2025 and believes there's more to come. This is especially the case given that its margin guidance provides room to accelerate marketing efforts that could arise from improving consumer sentiment from interest rates cuts. In addition, Citi is feeling confident that operating leverage and AI-driven consumer interaction can support margin expansion over the long term, leaving it well placed to achieve its medium term EBITDA margin target of 15%. The Temple & Webster share price ended the week at $17.96.
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