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:
Aristocrat Leisure Limited (ASX: ALL)
Analysts at Credit Suisse have held firm with their buy rating and $30.00 price target on this gaming technology company's shares ahead of its half year results release later this month. According to the note, its analysts believe the company's digital business may slightly underperform its expectations, but this is expected to be offset by its land-based products and the softening Australian dollar. I agree with Credit Suisse on Aristocrat Leisure and believe its shares are great value at 19x estimated full year earnings.
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Ord Minnett, its analysts have retained their buy rating and $8.60 price target on this iron ore producer's shares after mining giant Vale suspended operations at its Brucutu mine once again. As this has happened at a point when iron ore supply was already tightening, the broker suspects it could support higher prices for the base metal. While I do agree with Ord Minnett, I'd prefer to gain exposure to iron ore through a more diversified miner.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgans have retained their add rating and $33.00 price target on this banking giant's shares following the release of its half year results. According to the note, Westpac's results were in line with its expectations and it was pleased with the performance of its consumer bank business. In addition to this, Morgans believes that concerns over the bank's higher proportion of interest-only loans are unwarranted. I agree with Morgans on Westpac and believe it would be a good investment if you don't already have exposure to the banks.
