Australia's top brokers have been busy adjusting their estimates and recommendations 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 Ltd (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. Although the broker thought that ANZ's half year result was weak, it notes that this was largely due to non-cash write-downs of its Asian interests. Citi appears pleased with the bank's decision to increase its institutional lending and expects this to support its business and dividends in FY 2021. I agree with Citi on ANZ. While not my top pick in the sector, it is very attractively priced at the current level.
Coles Group Ltd (ASX: COL)
Analysts at Credit Suisse have retained their outperform rating and trimmed the price target on this supermarket operator's shares to $18.63. According to the note, the broker feels that the current environment is likely to push consumers more to supermarkets. Combined with increasing demand for delivery options, the broker expects supermarkets to win a greater share of the market in the near term. Ultimately, it appears to believe this will support the growth of its earnings and dividends in the coming years. I think Credit Suisse is spot on and I would be a buyer of Coles' shares.
Woolworths Group Ltd (ASX: WOW)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and trimmed the price target on this retail conglomerate's shares to $39.00. While its strong sales in March has led to increasing operating costs, Macquarie still appears pleased with its overall performance. And although the month of April was a bit up and down, on the whole it appears to believe its fourth quarter sales will be robust. While I would choose Coles over Woolworths, I do think it is worth considering as well.
