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:
Corporate Travel Management Ltd (ASX: CTD)
According to a note out of Credit Suisse, it has initiated coverage on this corporate travel specialist's shares with an outperform rating and $30.00 price target. The broker appears confident that Corporate Travel Management is well-positioned to continue growing strongly over the medium term. Its analysts have forecast earnings increasing at a double-digit CAGR through to FY 2021. Whilst I do have concerns due to short sellers targeting the company, I agree with Credit Suisse on its growth potential and feel it could be a good option for investors.
Praemium Ltd (ASX: PPS)
A note out of Goldman Sachs reveals that its analysts have upgraded this investment platform provider's shares from neutral to a buy rating with a reduced price target of 52 cents. According to the note, the broker made the move on valuation grounds after a sharp share price decline following the loss of a major client. And while Goldman acknowledges that the loss of ANZ Private is a concern, it remains positive due to upgrades to its platform, its investment in additional sales and marketing capabilities, and recent customer wins. Whilst it wouldn't be my first pick in the industry, its current valuation is attractive and could make it worth considering.
Webjet Limited (ASX: WEB)
Credit Suisse is also bullish on this online travel agent and has retained its outperform rating and $17.00 price target on its shares. According to the note, the broker has held firm with its recommendation despite news that its UK partner Thomas Cook is struggling significantly. Its analysts don't believe investors should be concerned by the news and continue to expect the partnership to provide a solid earnings contribution in FY 2020. I agree with Credit Suisse on Webjet and think its share price weakness this week could be a buying opportunity.
