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:
Bapcor Ltd (ASX: BAP)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $7.60 price target on this automotive aftermarket parts company’s shares. The broker held firm with its rating after Bapcor reiterated its earnings guidance for FY 2019 at an investor conference yesterday. In addition to this, Morgan Stanley was pleased with the update the company provided on its trucks parts business. I think Morgan Stanley is spot on with Bapcor and feel its shares are attractive at the current level.
Nearmap Ltd (ASX: NEA)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $4.20 price target on this aerial imagery technology and location data company’s shares following the launch of its new 3D and artificial intelligence products. Although the broker acknowledges that it is too soon to judge how the products will be received, the feedback it has received from customers has been positive. Its analysts have previously noted how other product launches have driven strong growth in the past. I agree with Morgan Stanley on Nearmap as well and think it is worth considering as a long-term investment.
Star Entertainment Group Ltd (ASX: SGR)
Analysts at Deutsche Bank have retained their buy rating and $5.05 price target on this casino and resorts operator’s shares despite its earnings downgrade earlier this week. According to the note, whilst the broker believes that this downgrade and concerns over the second Gold Coast casino licence could lead to Star Entertainment’s shares trading at a discount for a little while, it still sees a lot of value in them at the current level. Whilst I do agree that the company’s shares look cheap, I think there are better investment options elsewhere on the market.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.