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:
Coles Group Ltd (ASX: COL)
According to a note out of Citi, its analysts have retained their buy rating and $13.40 price target on this supermarket giant's shares after the release of its third quarter sales update. The broker appears to have been pleased with its performance during the quarter and noted improvements in transaction growth and basket size. Citi has previously stated that it is positive on Coles due to valuation grounds and feels its dividend is sustainable despite increasing capex. I agree with Citi on Coles and would be a buyer at the current level.
Seven Group Holdings Ltd (ASX: SVW)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted the price target on this conglomerate's shares to $21.00 following the release of its trading update. Due to a better than expected performance during the second half, management has increased its full year EBIT growth guidance from 25% to 40%. The broker didn't appear to be surprised with the upgrade and has previously spoken about how well-positioned its WesTrac business is for growth. Whilst it isn't a company that I'm a big fan of, things do look to be going very well for it at the moment. This could make it worth considering an investment in its shares at the current level.
Zip Co Ltd (ASX: Z1P)
Analysts at Morgans have retained their add rating and lifted the price target on this payments company's shares from $1.89 to a lofty $3.19 following the release of its third quarter update. According to the note, the broker made the move after lifting its earnings estimates to reflect better than expected operating leverage and lower bad debts. I think Morgans is spot on with Zip Co and feel it could be a great buy and hold investment option.
