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:
Cleanaway Waste Management Ltd (ASX: CWY)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on this waste management company's shares to $2.80. The broker believes that Cleanaway is well-placed to make earnings accretive investments in infrastructure and benefit from opportunities in energy generation from waste. In addition to this, the broker has been impressed with its performance in FY 2019 and sees plenty of growth ahead for the company. I agree with Macquarie on Cleanaway and think it could be a great long term investment.
Flight Centre Travel Group Ltd (ASX: FLT)
A note out of Citi reveals that its analysts have upgraded this travel agent's shares to a buy rating from neutral and lifted the price target on them to $49.20. According to the note, the broker believes that the outlook for its retail travel operations is improving following tax cuts and the improving house market. I think Citi makes a great point and feel that now could be a good time to consider an investment in the company's shares.
Reece Ltd (ASX: REH)
Analysts at Morgans have commenced coverage on this plumbing parts company with an add rating and $11.60 price target. According to the note, the broker believes that Reece has a major opportunity in the United States and expects its operations in the country to benefit from consolidation. I would have to agree with Morgans on this one as well. I think Reece is a high quality company and a great buy and hold option.
