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:
Qantas Airways Limited (ASX: QAN)
A note out of UBS reveals that its analysts have retained their buy rating but trimmed the price target on this airline operator's shares to $7.30. According to the note, the broker has reduced its earnings forecasts in response to the coronavirus outbreak and the recent devastating bushfires. And while it acknowledges that there is downside risk to its earnings if things intensify, for now it believes its shares are a buy at the current level. I agree with UBS and would be a buyer of Qantas shares.
Saracen Mineral Holdings Limited (ASX: SAR)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and lifted the price target on this gold miner's shares to $4.40. Goldman Sachs notes that Saracen delivered a production result which was 10% ahead of its expectations in the second quarter. Outside this, the broker believes the company represents the most compelling production and earnings growth profile under coverage. Goldman Sachs has forecast production of >800,000 ounces by FY 2024. This compares to its guidance for 500,000 ounces in FY 2020. I think Goldman Sachs makes some great points and Saracen could be a good option for investors looking for exposure to gold.
Telstra Corporation Ltd (ASX: TLS)
Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this telco giant's shares to $4.35. According to the note, the broker appears confident that Telstra will reiterate its full year guidance when it releases its half year results next month. This guidance is for underlying operating earnings in the range of $7.4 billion to $7.9 billion and capital expenditure of $2.9 billion to $3.3 billion. The broker also expects a dividend of 16 cents per share to be maintained in FY 2020. I agree with Credit Suisse and feel Telstra remains a great option for investors.
