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 upgraded this financial services company's shares to a buy rating with a $1.40 price target. Goldman has become more positive on the company due to the stabilisation of positive net flows (including pension payments) in platforms, capital management opportunities outside of dividends, its ongoing cost out program, and its valuation appeal. In addition, the broker points out that while AMP's bank business appears to be structurally challenged, it could perform relatively better versus peers in a lower interest rate environment. The AMP share price ended the week at $1.21.
A note out of Morgans reveals that its analysts have retained their add rating on this mining giant's shares with an improved price target of $48.70. Morgans was pleased with the mining giant's quarterly update and particularly the performance of its copper operations. The broker highlights that BHP's copper production was comfortably ahead of expectations. It feels that this leaves it well-placed to achieve the top end of its copper guidance in FY 2025. Morgans was also pleased to see that its iron ore production held up despite negative weather impacts during the three months. All in all, the broker remains very positive on BHP and sees lots of value in its shares at current levels. The BHP share price was fetching $38.06 at the end of the week.
Analysts at Macquarie have retained their outperform rating and $8.50 price target on this energy producer's shares. According to the note, Santos' recent quarterly update revealed production and revenue that was softer than expected. While this was disappointing, the broker notes that it was positively surprised with the company's free cash flow generation, which it reminds investors is where it counts. Outside this, Macquarie believes that Santos is on the cusp of a major free cash flow inflection as its new projects come on-stream (Barossa 3Q25, Pikka 2H25 if logistics go well). It also highlights that the company is well-placed to a downside oil scenario, with its free cash flow breakeven at just ~US$35 per barrel. In light of this, it feels that the market is seriously undervaluing the energy producer's shares at current levels. The Santos share price ended the week at $5.88.
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