Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $51.00 price target on Flight Centre's shares. The broker believes that the recent pullback in the travel agent's share price due to concerns over the performance of its Australian Leisure segment has left it trading at a very attractive price. Especially given the strong performance and growth potential of its Corporate segment. I think Morgan Stanley makes a fair point and feel Flight Centre would be a good option for investors.
Incitec Pivot Ltd (ASX: IPL)
Analysts at Deutsche Bank have retained their buy rating and $4.70 price target on the shares of this manufacturer and distributor of industrial explosives, industrial chemicals, and fertilisers to the agriculture and mining industries following the release of a market update. According to the note, the broker believes the issues raised in yesterday's update are one-offs. As a result, the broker has held firm with its buy rating and sees material upside for its shares over the next 12 months. Whilst it isn't a share that I plan to buy, it is admittedly looking cheap at these levels.
Rio Tinto Limited (ASX: RIO)
A note out of Citi reveals that its analysts have retained their buy rating and $108.00 price target on this mining giant's shares. According to the note, although Rio Tinto warned that its iron ore shipments have been disrupted by Tropical Cyclone Veronica, the broker remains positive on the company due to its belief that steel demand in China is improving. And despite the Rio Tinto share price rallying strongly this year, Citi still sees a lot of value in them at this level. I agree with Citi and feel Rio Tinto would be a great option for investors looking for exposure to the resources sector.
