February is almost over &  Australia’s top brokers have been busy refining their recommendations, pinpointing the most promising ASX-listed stocks for investors. With market conditions shifting, three standout stocks have captured the attention of analysts this week. Here’s why these shares are making waves and why you might want to consider them for your portfolio.

1. BHP Group Ltd (ASX: BHP) – A Strong Buy for Resource Investors

Global investment firm Goldman Sachs has reaffirmed its buy rating on mining giant BHP Group with an upgraded price target of $47.40. This comes after BHP delivered a solid half-year result, with copper operations outperforming expectations. Goldman highlights a 6% EBITDA beat across key operations, including Escondida, Spence, and South Australia, demonstrating strong cost efficiency.

Moreover, analysts see BHP’s current valuation as attractive, noting that the stock trades at approximately 0.8x net asset value (NAV) and 6x forward EBITDA, significantly below its 25-year historical averages. With the current share price at $41.07, investors may find this a compelling entry point into one of Australia’s most influential mining stocks.

2. Challenger Ltd (ASX: CGF) – An Undervalued Opportunity?

Bell Potter analysts have reaffirmed their buy recommendation on Challenger Ltd, an annuities provider, maintaining a price target of $7.80. The stock recently saw a sharp sell-off following its half-year earnings release—a move the broker believes was unwarranted.

Despite market jitters, Challenger demonstrated solid growth in new business, effective cost control, and stable asset returns. Furthermore, management’s positive outlook and maintained guidance suggest resilience in its business model. With the share price currently at $5.66, analysts see an opportunity for investors to buy in at a discount before the market corrects its overreaction.

3. HMC Capital Ltd (ASX: HMC) – Capitalizing on Growth

Goldman Sachs has also reiterated a buy rating on HMC Capital, an alternative asset manager, increasing its price target to $12.30. The upgrade follows a strong half-year earnings report, which showed significant earnings growth that exceeded market expectations.

Analysts at Goldman attribute this success to HMC Capital’s ability to raise assets under management at an accelerated pace, driving substantial management fee growth. With shares currently trading at $10.52, the brokerage sees further upside potential as HMC continues to expand its asset base and capitalize on growth opportunities.

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