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:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted the price target on this payments company's shares to $36.50. Ord Minnett was pleased with Afterpay's trading update and notes strong momentum in the ANZ, UK, and US markets. It also appears pleased with the company's partnership with eBay Australia which will commence in 2020. I agree with Ord Minnett and would class its shares as a buy.
Appen Ltd (ASX: APX)
Analysts at UBS have retained their buy rating and $30.00 price target on this language technology company's shares. According to the note, the broker was pleased with its trading update which revealed an upgrade to its FY 2019 earnings guidance. The catalyst for this has been a stronger than expected second half by the key Relevance business. UBS believes that a re-rating could be in order upon the release of its full year results. I think the broker is spot on and would also be a buyer of Appen's shares.
Qantas Airways Limited (ASX: QAN)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this airline operator's shares to $8.00. Macquarie notes that Qantas is aiming to increase its Domestic margins materially over the coming years. While the broker was expecting an improvement, Qantas' targets are well ahead of its forecasts. In addition to this, the broker points out that its shares are trading at a deep discount to its international peers and offer a lot of value to investors. I would have to agree with this recommendation as well. I continue to believe Qantas is a great option for investors.
