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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on this gaming technology company's shares to $31.80. The broker believes investors need to overlook the difficult trading conditions it is facing at present and focus on the future. It remains positive on its outlook thanks to its fast-growing digital business and the reopening of casinos. I agree with UBS on Aristocrat and would be a buyer of its shares.
Qantas Airways Limited (ASX: QAN)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating but trimmed the price target on this airport operator's shares slightly to $5.20. According to the note, the broker expects Qantas' passenger numbers to return to previous levels in 2023. Though, a return to profitability is likely to come a year earlier. This should mean it has sufficient liquidity to ride out the storm. I think Qantas could be a good option for investors, but you might want to restrict an investment to just a small part of your portfolio. Just in case there is a second wave that hinders the reopening of Australia.
Telstra Corporation Ltd (ASX: TLS)
Analysts at Goldman Sachs have retained their conviction buy rating but trimmed the price target on this telco giant's shares slightly to $4.05. According to the note, the broker has been looking into the sustainability of its 16 cents per share dividend. It concludes that it sees little risk of a cut in the next three years, even after stress testing several bear case scenarios. I think Goldman Sachs is spot on and Telstra would be a great option for investors at the current level.
