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:
Australia and New Zealand Banking Group (ASX: ANZ)
According to a note out of Citi, its analysts have retained their buy rating and $24.75 price target on this banking giant's shares. The broker doesn't believe that APRA will suspend bank dividend payments. This is because too many retirees rely on them as a source of income. And while it does expect the bank to cut its dividend, it still believes ANZ's shares are good value at the current level. Whilst ANZ isn't my top pick in the banking sector right now, I agree with Citi that its shares are a buy.
NEXTDC Ltd (ASX: NXT)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on this data centre operator's shares to $9.70. According to the note, the broker was pleased with its decision to raise funds to support its growth plans. Overall, it believes this leaves NEXTDC well-positioned to take advantage of the industry-wide tailwinds of cloud migration and growth in big data. The broker also suspects that the company's shares could soon be included in the ASX 100 index. I agree with Goldman Sachs on NEXTDC and believe it would be a great long-term option.
Scentre Group (ASX: SCG)
Analysts at Morgan Stanley have upgraded this shopping centre-focused property group's shares to an overweight rating with a reduced price target of $2.20. According to the note, the broker believes that Scentre could be one of the best shares to own when the coronavirus crisis passes. Especially given the quality of its assets and their prime locations. In addition to this, it notes that its shares have fallen very heavily in recent weeks and feels they are attractively priced. Whilst I agree with Morgan Stanley on Scentre, I would hold off buying shares until trading conditions return to normal.
