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 ASX 200 shares are in the buy zone:
CSL Limited (ASX: CSL)
According to a note out of UBS, its analysts have retained their buy rating and $342.00 price target on this biotherapeutics company's shares. The broker believes that CSL's Seqirus business is well-positioned to benefit from increasing demand for influenza vaccines in the future because of the current pandemic. It suspects that this could offset any weakness in the core CSL Behring business caused by potential plasma collection disruptions. I agree with UBS and feel CSL would be a great option for investors.
Nearmap Ltd (ASX: NEA)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this aerial imagery technology company's shares to $2.47. Although Nearmap is being impacted by the pandemic, it notes that its sales have remained resilient and usage among existing customers appears strong. I think Macquarie is spot on and believe Nearmap could be a great long term option.
Rio Tinto Limited (ASX: RIO)
Analysts at Goldman Sachs have retained their buy rating and lifted the price target on this mining giant's shares to $101.10. The broker made the move after upgrading its iron ore price forecasts to account for strong Chinese steel production and weaker supply out of Brazil. It expects the stronger iron ore prices to lead to a better than expected profit from Rio Tinto in FY 2020. Goldman also estimates that its free cash flow will support a fully franked dividend yield of 5%. I would have to agree with this recommendation as well. I think Rio Tinto is a top option for investors wanting exposure to the resources sector.
