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:
Bravura Solutions Ltd (ASX: BVS)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this fintech company's shares to $6.20. The broker appears pleased with Bravura's first half results, which came in ahead of its expectations. It also notes that its guidance for the full year has been maintained. Looking ahead, Macquarie seems optimistic on the Midwinter and FinoComp acquisitions, which are expected to underpin its growth over the coming years. I agree with Macquarie on Bravura and feel it could be a very good long-term option.
Perpetual Limited (ASX: PPT)
Analysts at Morgan Stanley have upgraded this fund manager's shares to an overweight rating with an increased price target of $55.00 following its half year update. Although Perpetual posted a decline in profits, the broker was pleased with the performance of parts of its Australian business and its good costs control. In addition to this, Morgan Stanley appears to have been pleasantly surprised with the progress of its U.S. based platform and sees a lot of potential. Especially following the acquisition of Trillium. Whilst it isn't a company that I'm a big fan of, I do think it could be worth a closer look.
Qantas Airways Limited (ASX: QAN)
According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on this airline operator's shares to $7.40. The broker notes that Qantas delivered a first half profit ahead of its estimates after revenue growth accelerated in the second quarter. It was also pleased to see the company cut capacity to reduce the impact of the coronavirus outbreak on its profits. Overall, it appears to believe that investors should look beyond this short term headwind and focus on the future. I agree with UBS and feel Qantas could be a good option for investors if the coronavirus outbreak doesn't escalate.
