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:
Incitec Pivot Ltd (ASX: IPL)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $3.70 price target on the shares of this manufacturer and distributor of industrial explosives, industrial chemicals and fertilisers. Macquarie sees a lot of value in Incitec Pivot's shares at the current level and notes that the discount to rival Orica Ltd (ASX: ORI) is now the largest in a decade. It feels this could make it an opportune time to pick up shares given that there are signs that its earnings downgrade cycle could be coming to an end. Whilst it isn't a share that I'm a big fan of, I do agree that its shares look good value.
Nearmap Ltd (ASX: NEA)
A note out of Citi reveals that its analysts have initiated coverage on this aerial imagery technology and location data company's shares with a buy rating and $4.26 price target. According to the note, the broker believes the company has a very bright future thanks to its major opportunity in the United States and expansion into new markets. At present the broker estimates that Nearmap has captured less than 1% of the United States market. I agree with Citi on Nearmap and believe it would be a great long-term investment.
Suncorp Group Ltd (ASX: SUN)
Analysts at Morgans have retained their add rating but trimmed the price target on this insurance and banking giant's shares to $14.48 following the resignation of its CEO Michael Cameron and the confirmation that its earnings will be in line with market expectations. According to the note, although the broker has downgraded its estimates for FY 2019 to be in line with its guidance, it still believes its shares are cheap and expects recent initiatives to lead to a re-rating in the near term. Whilst I'm not a buyer of insurance shares, I think Morgans makes some fair points on Suncorp.
