Australia’s top brokers have been 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 today are summarised below. Here’s why brokers think these S&P/ASX 200 Index (ASX: XJO) shares are in the buy zone:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Ord Minnett, its analysts have retained their buy rating and $30.00 price target on this gaming technology company’s shares. The broker expects that self-isolation, lockdowns, and casino closures will cause a spike in digital and social gaming. Especially in key markets such as the UK and United States. Ord Minnett believes this will be a big boost to its Digital business and enhance the monetisation of its users. I think Ord Minnett is spot on and Aristocrat Leisure is worth considering when the volatility eases.
Cochlear Limited (ASX: COH)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this hearing solutions company’s shares to $196.00. According to the note, the broker believes the $880 million it raised through an institutional placement will provide it with ample liquidity during the current difficult trading environment. Another positive is the product recall by rival Advanced Bionics. It expects this to lead to market share gains for Cochlear in the future. I think Macquarie makes some great points and Cochlear could be worth a closer look.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Analysts at Goldman Sachs have retained their buy rating and $61.90 price target on this pizza chain operator’s shares. According to the note, the broker believes that Domino’s is one of the best-placed quick service restaurant operators to tackle the reduced foot traffic from the coronavirus outbreak. This is because it is predominantly a pick-up/delivery restaurant business model. I agree with Goldman Sachs and expect Domino’s to weather the storm better than others.
And here are five top ASX shares that a leading analyst has named as buys. They have been tipped to bounce back strongly from the selloff.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Domino's Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.