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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on this infant formula company's shares to NZ$18.50 (A$17.69). The broker was impressed with a2 Milk Company's half year results, which came in a head of its expectations. It was also pleased to see stronger than forecast margins, despite the U.S. fresh milk business posting a larger than expected loss. I agree with UBS and would be a buyer of a2 Milk Company's shares.
Flight Centre Travel Group Ltd (ASX: FLT)
Analysts at Credit Suisse have upgraded this travel agent's shares to an outperform rating with a $47.40 price target after the release of its half year results. According to the note, Flight Centre delivered a result in line with its expectations. And while it has revised its earnings guidance lower, the broker appears to believe investors should focus on the future. It believes its corporate, North American, and European businesses have solid growth prospects. Whilst I think Flight Centre could be good value following recent share price weakness, I prefer other companies in the travel industry.
Ramsay Health Care Limited (ASX: RHC)
A note out of the Macquarie equites desk reveals that its analysts have retained their outperform rating and lifted the price target on this private hospital operator's shares to $79.00. According to the note, Ramsay's first half results were largely in line with its expectations. And while it acknowledges that the Australian market remains tough and could weigh on its performance, it sees opportunities for decent growth in all regions over the long term. I think Macquarie makes some good points, but I would prefer to see trading conditions in Australian improve before investing.
