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:
Accent Group Ltd (ASX: AX1)
According to a note out of Morgan Stanley, its analysts have initiated coverage on this footwear retailer’s shares with an overweight rating and $2.30 price target. The broker is a fan of Accent due to its exposure to the rapidly growing active footwear market through its HYPE DC, Platypus, and The Athlete’s Foot brands. I agree with Morgan Stanley and would be a buyer of its shares. Especially given their generous dividend yield.
Aventus Group (ASX: AVN)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this large format retail property company’s shares to $3.45. The broker was pleased with Aventus’ performance in the first half and notes that it is working towards reducing its gearing. Furthermore, Macquarie was pleased to see its guidance narrowed to the high end of its range. I think Macquarie is spot on and would be a buyer of Aventus’ shares.
Nearmap Ltd (ASX: NEA)
Analysts at Goldman Sachs have initiated coverage on this aerial imagery technology and location data company’s shares with a buy rating and $2.25 price target. According to the note, the broker acknowledges that its recent ACV downgrade indicates near-term challenges in scaling in the United States. But it remains confident in its future prospects and notes the fragmented competitor landscape and broadening use cases. It expects this to support solid growth in ACV in the coming years. I agree with Goldman Sachs on this one as well and feel Nearmap is a great long-term option.
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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 Nearmap Ltd. The Motley Fool Australia has recommended Accent Group and AVENTUS RE UNIT. 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.