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 broker buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Citi, its analysts have retained their buy rating but trimmed their price target on this travel agent's shares to $50.50 following its trading update on Wednesday. Whilst its update has resulted in a reduction in the broker's forecasts, it remains upbeat on its prospects in the second half as one-off factors fade. Whilst I think Flight Centre is trading at an attractive level, I intend to wait for its guidance at its AGM next month before considering an investment.
Kogan.com Ltd (ASX: KGN)
A note out of Credit Suisse reveals that its analysts have initiated coverage on this ecommerce company with an outperform rating and $7.18 price target. According to the note, the broker is bullish on the prospects of its private label range and believes it could drive further strong revenue growth. In addition to this, it is optimistic on Kogan Marketplace and keen to see how it fares during the first 12 months of operation. Overall, I agree with Credit Suisse and would class Kogan as a buy.
SeaLink Travel Group Ltd (ASX: SLK)
Analysts at Ord Minnett have retained their buy rating and lifted the price target on this travel company's shares to $5.85 after it announced the transformational acquisition of Transit Systems for $635 million. The broker notes that SeaLink is now primarily an infrastructure management business, with only a small amount of exposure to the tourism sector. It sees this as attractive and believes the market will re-rate its shares in time. I think Ord Minnett is spot on and that SeaLink could be a good option for investors.
