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:
Ansell Limited (ASX: ANN)
According to a note out of Citi, its analysts have retained their buy rating and $31.50 price target on this health and safety products company's shares following the release of its full year results. Citi was pleased to see Ansell deliver a result in line with its expectations thanks to a particularly strong performance from its healthcare segment. Looking ahead, the broker was happy with its earnings per share guidance of US112 cents to 122 cents. The mid-point of this range implies annual growth of 5%. Whilst it isn't a share that I'm a big fan of, I think it is worth taking a closer look at current levels.
Challenger Ltd (ASX: CGF)
Equity analysts at Macquarie have held firm with their outperform rating but trimmed the price target on this annuities company's shares to $8.40 following the release of its full year results. According to the note, its result was largely in line with estimates and its guidance was as expected. Looking ahead, the broker notes that falling interest rates will be a challenge, but appears confident that Challenger will be able to offset this. It also suspects that margin pressures are beginning to ease. Whilst I think Macquarie makes some great points, I intend to wait to see how the company performs in FY 2020 before considering an investment.
Domino's Pizza Enterprises Ltd (ASX: DMP)
A note out of Goldman Sachs reveals that it has retained its buy rating and $50.50 price target on this pizza chain operator's shares ahead of its full year results release later this month. According to the note, the broker expects Domino's to deliver an EBITDA result in line with the market consensus at $286.2 million. Outside this, the broker likes Domino's due to its strong long term growth outlook thanks to its European and Japanese operations. I agree with Goldman on Domino's and feel it could be a very good buy and hold option due to its expansion opportunities.
