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:
Autosports Group Ltd (ASX: ASG)
A note out of UBS reveals its analysts have retained their buy rating and lifted the price target on this auto retailer’s shares to $2.00. According to the note, the broker lifted its price target in response to Autosport’s decision to acquire six dealerships. These are expected to increase its market share on the East Coast and expand its brand portfolio. And while the broker acknowledges that trading conditions are tough, it appears confident the luxury car market will return to growth this quarter. At 12x estimated forward earnings, Autosports could be worth a closer look if trading conditions improve as UBS expects.
Bapcor Ltd (ASX: BAP)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on Bapcor’s shares to $7.70. Although Macquarie felt that Bapcor’s recent trading update was softer than expected, it appears pleased with its acquisition of Driveline and Diesel Drive. It believes Bapcor is paying a good price and feels it has attractive qualities for the current operating environment. I agree with Macqaurie and think Bapcor is worth considering at this level.
Lendlease Group (ASX: LLC)
Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this international property and infrastructure company’s shares to $19.85. According to the note, the broker has upgraded its earnings expectations for its Development segment. Combined with a reduction in its risk free rate, this led to an 18% increase in its price target. I think Credit Suisse is spot on with this one and agree it is in the buy zone.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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.
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