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:
CSL Limited (ASX: CSL)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and lifted the price target on this biotherapeutics company’s shares to $312. The broker lifted its price target after exploring its R&D pipeline. After assessing the data and likely regulatory pathway, the broker calculates a total risk-adjusted valuation of $38 per share is in its near term pipeline. I agree with Goldman Sachs on CSL and believe it would be a great long-term option due to this pipeline and strong demand for its existing products.
Megaport Ltd (ASX: MP1)
Analysts at UBS have retained their buy rating and lifted the price target on the shares of this provider of elasticity connectivity and network services to $11.55. According to the note, the broker believes that Megaport’s recent capital raising should be enough to fund its operations to breakeven. It also expects the additional capital to support its expansion into new and existing geographies. But overall, the broker sees Megaport as a big winner from the increasing amount of data that consumers and businesses are generating. I agree with UBS and feel Megaport is one of the best mid cap shares to consider buying right now.
Sezzle Inc (ASX: SZL)
A note out of Ord Minnett reveals that its analysts have retained their buy rating and $3.40 price target on this buy now pay later provider’s shares. According to the note, the broker was pleased with Sezzle’s performance during the key Black Friday and Cyber Monday sales events. Sezzle’s update revealed underlying merchant sales growth of 402% to US$11.3 million. While I think Sezzle is worth watching, I have a preference for a couple of its rivals.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO and Sezzle Inc. 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.