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:
Collins Foods Ltd (ASX: CKF)
According to a note out of UBS, its analysts have upgraded this quick service restaurant operator's shares to a buy rating with a trimmed price target of $8.95. The broker was pleased to see the company's KFC Australia operations have been performing well during the pandemic. In light of this, its defensive qualities, and attractive valuation, the broker believes its shares are in the buy zone. I would agree with UBS on Collins Foods and feel it would be a good long term option.
IDP Education Ltd (ASX: IEL)
Analysts at Morgan Stanley have retained their overweight rating and $17.50 price target on this language testing and student placement company's shares. It notes that surveys have shown that demand for international education remains robust. As a result, the broker suspects that IDP Education could bounce back reasonably quickly when trading conditions return to normal. I think Morgan Stanley is spot on and would be a buyer of IDP Education's shares.
ResMed Inc. (ASX: RMD)
A note out of Morgans reveals that its analysts have retained their add rating and lifted the price target on this medical device company's shares to $29.00. According to the note, ResMed outperformed Morgans' expectations in the third quarter. And although the company's sleep treatment business is facing headwinds because of lower diagnosis rates, it isn't overly concerned and expects things to return to normal when COVID-19 restrictions are lifted. I agree with Morgans on this one as well and feel ResMed would be a great long-term investment option.
