Image source: Getty Images
This has been a busy week for Australia’s top brokers. This has resulted in a number of broker notes being issued.
Here is a summary of three buy ratings from brokers that you may want to know more about. Here is why brokers think these ASX shares are in buy territory:
Coronado Global Resources Inc. (ASX: CRN)
According to a note from Bell Potter, its analysts have maintained a Buy rating on the coal mining company’s shares with an improved target price of $1.85. The broker is very positive about Coronado Global’s outlook. This is due to improved production volumes and subsequent cost benefits following self-funded investments across its Australian and US operations. The broker expects this to generate improved free cash flow and shareholder returns going forward. Especially given its belief that metallurgical coal prices will be strong in the long term due to supply constraints. It also sees potential for Coronado Global to participate in industry consolidation. Coronado Global’s share price ended the week at $1.41.
Premier Investments Limited (ASX: PMV)
A note from Citigroup revealed that its analysts maintained a buy rating and a $36.00 price target on the conglomerate’s shares. Citigroup was reviewing a potential merger of Premier Investments’ apparel brands with the department store operator. Mayer Holdings Limited (ASX: Malaysian RinggitThe broker is positive about the proposal and believes it could support the latter’s margin expansion. He also sees potential for significant synergies from combining the two parties. Another positive is that Citi is optimistic about the proposed split of the Peter Alexander and Smigel brands, which are expanding internationally. Overall, the broker believes that the purchase of Premier Investments gives investors exposure to growth opportunities. Premier Investments shares were trading at $30.52 on Friday.
Telstra Group Limited (ASX: TLS)
Analysts at Goldman Sachs have reiterated their buy rating on the telecoms giant with an improved target price of $4.30. According to the note, the broker was pleased with Telstra’s decision to raise mobile phone prices by $2 to $4. Goldman believes this will boost Telstra’s average revenue per user (ARPU) metric by $2.50 and demonstrate that the rationality of the mobile market is still intact, especially when combined with Optus’ recent increase. In response to the update, the broker raised its earnings and revenue estimates for FY25 and FY26. Telstra’s share price was trading at $3.82 at Friday’s close.
