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 ASX shares are in the buy zone:
Bubs Australia Ltd (ASX: BUB)
According to a note out of Citi, its analysts have retained their (high risk) buy rating and $1.10 price target on this infant formula company's shares. The broker was pleased to see the company announce a major supply agreement with Coles Group Ltd (ASX: COL) this week for its cow's milk infant formula. It also notes that Bubs has been able to lift the prices of its products. And while it acknowledges that there's a lot of work to be done, it sees a lot of promise in the Bubs brand. I would agree with Citi on Bubs. Things are certainly looking very promising right now for the growing company.
Cleanaway Waste Management Ltd (ASX: CWY)
Analysts at Morgans have upgraded this waste management company's shares to an add rating with a $2.12 price target. According to the note, the broker expects the net impact on Cleanaway's business during the pandemic to be largely flat. This is due to reductions in commercial collections being offset by increases in residential collections. While it isn't my favourite option in the space, I agree that it could be worth considering.
Wesfarmers Ltd (ASX: WES)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $40.90 price target on this conglomerate's shares. According to the note, the broker believes its core businesses are well-placed to benefit from the easing of restrictions in the near future. In addition to this, Macquarie expects consumers to be attracted to discount options in the near term. It feels this bodes well for its Catch and Kmart businesses. I think Macquarie is spot on and would be a buyer of its shares.
