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 Morgan Stanley, its analysts have retained their overweight rating and lifted the price target on this payments company's shares to $45.00 ahead of its half year results. The broker made the move after upgrading its forecasts on the belief that Afterpay is performing better than previously expected. Outside this, Morgan Stanley believes the company is disrupting the global payments market and well-positioned for strong long-term growth. I agree with the broker on Afterpay and believe it would be a great long term option.
Appen Ltd (ASX: APX)
A note out UBS reveals that its analysts have retained their buy rating and lifted the price target on this artificial intelligence and machine learning services company's shares to $32.00. According to the note, Appen's full year results were in line with its expectations and it was pleased to see the company agree a new contract with one of its largest customers. This contract has the same pricing, which eases concerns that its pricing could come under pressure in the near term. I think UBS is spot on and Appen remains a great investment option.
SEEK Limited (ASX: SEK)
Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this job listings giant's shares to $24.90. According to the note, SEEK delivered a result that was a touch softer than the broker expected. It also notes that the full extent of the coronavirus impact is uncertain at this stage. Despite this, the broker remains positive on its long term prospects and continues to rate its shares as a buy. Whilst I agree that SEEK is a long-term buy, I do think it could be reasonably volatile in the short term due to its exposure to the China market.
