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:
National Australia Bank Ltd (ASX: NAB)
A note out of Citi reveals that its analysts have retained their buy rating and $30.50 price target on this banking giant's shares following its first quarter update. According to the note, the broker was pleased with its performance during the quarter and notes its strong capital position. Overall, it feels it is well-placed to meet its expectations in FY 2020. I think Citi is spot on and would be a buyer of the bank's shares. Especially if I were an income investor. The broker expects a $1.66 per share dividend this year. This equates to a fully franked 6.1% dividend yield
Pro Medicus Limited (ASX: PME)
According to a note out of Morgans, its analysts have retained their add rating but trimmed the price target on this health imaging software company's shares slightly to $32.47. Pro Medicus delivered a first half profit result which was in line with the broker's expectations. It also notes that the company has highlighted a growing pipeline of opportunities for the second half and beyond. It expects this to help the company grow into its high price to earnings ratio over the coming years. I would have to agree with Morgans on Pro Medicus. I feel it could be a great long term investment option.
Telstra Corporation Ltd (ASX: TLS)
Analysts at Goldman Sachs have retained their conviction buy rating and $4.40 price target on this telco giant's shares. According to the note, the broker was pleased with Telstra's performance in the first half. This was particularly the case with its better than expected cost performance, which drove stronger underlying margins. The broker believes this leaves Telstra in a strong position to hit the upper end of its FY 2020 underlying earnings guidance. I agree with Goldman Sachs and would be a buyer of its shares.
