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:
Galaxy Resources Limited (ASX: GXY)
According to a note out of Citi, its analysts have retained their buy rating but trimmed the price target on this lithium miner's shares to $2.70 following the release of its first quarter update. Citi appears a touch disappointed with Galaxy's higher costs and has revised its forecasts accordingly. Furthermore, although the company revealed that it has been unable to find a partner to develop its Sal de Vida asset with, the broker believes Galaxy has the means to fund it itself. Though, it notes that this is a risky option for the company. Whilst I think Galaxy's shares look very cheap, I wouldn't be a buyer until lithium prices reach an inflection point.
ResApp Health Ltd (ASX: RAP)
Analysts at Morgans have retained their add rating and 19 cents price target on this digital health company's shares after it released positive top-line results from its Australian Breathe Easy adult prospective, double-blind clinical study. ResApp's smartphone-based algorithms were found to accurately diagnose all respiratory diseases included in the study. Morgans sees this as a big positive as the adult respiratory market is upwards of three times larger than the paediatric market. I was impressed with ResApp's results, but I feel it is a little too soon to make an investment.
Wesfarmers Ltd (ASX: WES)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $37.13 price target on this conglomerate's shares. According to the note, the broker believes the housing market is stabilising, which is good news for its key Bunnings business at a time when it is expanding its product range into new categories. I agree with Macquarie on Wesfarmers and would class its shares as a buy.
