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:
A2 Milk Company Ltd (ASX: A2M)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this infant formula and fresh milk company’s shares to $15.70. According to the note, the broker continues to believe a2 Milk has strong long-term growth potential that warrants buying its shares today. Though, it does note that its AGM update next week will reveal how demand for its products in the short term is faring. The bears appear to believe competition is rising and demand is falling. Nevertheless, I agree with Macquarie and would be a buyer of its shares with a long term view.
Corporate Travel Management Ltd (ASX: CTD)
Analysts at Ord Minnett have retained their buy rating and $27.40 price target on this corporate travel specialist. According to the note, the broker was pleased to see the company confirm its guidance at its recent annual general meeting. And while it believes there will be a few challenges along the way, it appears confident it can achieve it. I think Corporate Travel Management could be worth a look, though it is worth remembering that short sellers are targeting it.
Costa Group Holdings Ltd (ASX: CGC)
According to a note out of UBS, its analysts have retained their buy rating but slashed the price target on this horticulture company’s shares to $3.25. While the broker acknowledges that 2019 has been incredibly challenging, it remains optimistic on the future. UBS expects earnings growth of 24% per annum over the next three years. Combined with its robust balance sheet following its capital raising, the broker continues to rate its shares as a buy. Whilst I do see value in its shares at the current level, I’m not convinced Costa is over the worst of its issues yet.
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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 Corporate Travel Management Limited and COSTA GRP FPO. The Motley Fool Australia owns shares of A2 Milk. 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.