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:
BINGO Industries Ltd (ASX: BIN)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and lifted the price target on this waste management company's shares to $3.50. It made the move after looking at the impact of the higher Victorian waste levy on its business. Goldman expects this to be a positive for its returns and profits. Outside this, the broker believes BINGO is well-placed to grow its earnings per share at a CAGR of 22% through to FY 2022. I agree with Goldman Sachs and feel BINGO is a good long-term option for investors.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Morgans have upgraded this pizza chain operator's shares to an add rating and lifted the price target on them to $60.30. According to the note, the broker believes Domino's has limited exposure to the coronavirus outbreak. In fact, it recalls that its Japan business benefited during the SARS outbreak. In addition to its defensive qualities, it notes that it is one of only a handful of large cap shares that have the potential to deliver double-digit earnings growth over the medium term. I think Morgans is spot on and would be a buyer of Domino's shares.
Zip Co Ltd (ASX: Z1P)
A note out of UBS reveals that its analysts have retained their buy rating but trimmed the price target on this buy now pay later provider's shares to $4.40. The broker was pleased with its first half performance and didn't appear surprised with its higher costs. And although it expects Zip Co to be making a net loss until at least FY 2021, it sees a lot of a value in its shares at the current level. I would agree with UBS on Zip Co as well. I think it has strong long term growth potential which could make its recent share price weakness a buying opportunity.
