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) are in the buy zone:
Aristocrat Leisure Limited (ASX: ALL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but lowered their price target on this gaming technology company's shares to $32.00. According to the note, the broker believes that the closure of casinos, lockdowns, and self-isolation could benefit its growing digital business. This would soften the blow of the core pokie machine business which is likely to struggle in the current environment. Outside this, it likes the company due to its strong balance sheet. I agree with Macquarie and believe this could be a big lift for its digital business.
CSL Limited (ASX: CSL)
According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed the price target on this biotherapeutics company's shares slightly to $336.00. Goldman Sachs believes that the coronavirus outbreak could impact demand for its immunoglobulins. It suspects some users could stretch out their therapy from bi-weekly to tri-weekly dosing. However, it doesn't expect the impact to be overly material and continues to be bullish on the investment opportunity. I agree with Goldman Sachs and would be a buyer of CSL's shares when the market volatility eases.
Woolworths Group Ltd (ASX: WOW)
Another note out of the Macquarie equities desk revealed that its analysts have retained their outperform rating but trimmed the price target on this conglomerate's shares slightly to $41.30. Macquarie notes that its Food business is thriving in the current environment. And while stockpiling activities appear to be easing, the closure of cafes and restaurants is leading to sustained demand. This should offset some of the lost earnings from the temporary closure of its Hotels business. Whilst it isn't my favourite in the industry, I do think it is worth considering.
