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 shares are in the buy zone:
HUB24 Ltd (ASX: HUB)
According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed the price target on this investment platform provider's shares to $11.60. The broker was impressed with its stronger than expected inflows during the third quarter, but expects these to soften in the current quarter. This is due to volatile equity markets and slower switching across platforms by advisers. Nevertheless, the broker remain positive on its long term growth potential and expects earnings per share to grow by a CAGR of 24% between FY 2019 and FY 2022. I think HUB24 could be worth a closer look.
Megaport Ltd (ASX: MP1)
Analysts at Morgans have retained their add rating and $12.94 price target on this elastic interconnection services provider's shares. According to the note, the broker was pleased with its third quarter update and notes that revenues grew 74% over the prior corresponding period. It appears confident there will be more of the same in the future. Especially given how work at home and cost cutting initiatives are driving increasing cloud computing usage. I agree with Morgans and feel Megaport would be a great long term investment option.
Transurban Group (ASX: TCL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $14.49 price target on this toll road operator's shares. According to the note, the broker believes that Transurban's roads will bounce back strongly when restrictions are eased. In addition to this, it believes its liquidity is strong and that it is well-positioned to navigate the tough trading conditions. I think Macquarie is spot on and Transurban could be a good long term option for patient investors.
