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 Ltd (ASX: APT)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $42.90 price target on this payments company’s shares. The broker has been looking through its expectations for Afterpay in the first half and appears confident another stellar result is coming. Goldman suspects that a strong end to the year means it could beat its customer additions and gross merchandise value estimates by around 10%. I agree with Goldman Sachs and would be a buyer of Afterpay’s shares.
LiveTiles Ltd (ASX: LVT)
A note out of Citi reveals that its analysts have retained their buy rating but cut the price target on this intelligent workplace platform provider’s shares to 63 cents. According to the note, Citi expects LiveTiles’ performance to have improved greatly in the second quarter following a soft start to the new financial year. Whilst I think that LiveTiles has a lot of potential, I would suggest investors wait to see how it has performed in the second quarter before considering an investment.
Tyro Payments Ltd (ASX: TYR)
Analysts at Morgan Stanley have initiated coverage on this payments company with an overweight rating and $4.15 price target. According to the note, the broker likes Tyro Payments due to its exposure to a growing card payments market. And while it expects its operations to be loss-making in the near term, it appears positive on the Australian merchant acquirer’s long term prospects. I like Tyro Payments but I would like to see how it performs in FY 2020 before looking at an investment.
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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 AFTERPAY T FPO. The Motley Fool Australia has recommended LIVETILES FPO. 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.