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 S&P/ASX 200 Index (ASX: XJO) shares are in the buy zone:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their buy rating and $19.20 price target on this infant formula and fresh milk company's shares. Citi has named a2 Milk Company as one of its top picks in the sector and expects it to outperform during the current market volatility. It also likes the company due to its strong balance sheet which was overflowing with cash when it released its half year results. I agree with Citi and think a2 Milk Company is a great long term option for investors.
Coles Group Ltd (ASX: COL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $17.20 price target on this supermarket operator's shares. According to the note, the broker believes that Australian supermarkets should be relatively immune from the impact of the coronavirus outbreak. This has made Coles one of its top picks in the consumer staples sector right now. I think Macquarie is spot on with this one and feel Coles is a great defensive option for investors.
CSL Limited (ASX: CSL)
Another note out of Citi reveals that its analysts have upgraded this biotherapeutics giant's shares to a buy rating with a $332.00 price target. The broker made the move after a decent pullback in the company's share price over the last few weeks. It believes this brought its shares down to an attractive entry point, especially given its strong earnings growth potential over the next few years. Citi also sees upside risks to its forecasts thanks to its growing plasma collection network. I would have to agree with Citi on this one as well. I think CSL is one of the best buy and hold options on the ASX.
