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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of UBS, its analysts have retained their buy rating and NZ$22.00 (A$20.64) price target on this infant formula company’s shares. UBS believes there is some upside risk to its earnings guidance for FY 2020. In addition to this, it suspects there could be a new product launch in the medium term. It feels this could be the catalyst to taking its shares higher again. I agree with UBS on a2 Milk Company and think it would be a great buy and hold investment.
Cochlear Limited (ASX: COH)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this hearing solutions company’s shares to $208.50. According to the note, the broker has been busy surveying audiologists. Its survey found that Cochlear has the strongest portfolio of implantable products. And while it notes that the pandemic has reduced patient volumes materially, it believes volumes will rebound when the crisis passes. And with Advanced Bionics recalling competing devices, it expects Cochlear to grow its sales quicker than the industry average. I think Macquarie is spot on and Cochlear would be a top option.
Crown Resorts Ltd (ASX: CWN)
Analysts at Morgan Stanley have upgraded this casino and resorts operator’s shares to an overweight rating with an improved price target of $12.00. According to the note, due to international travel uncertainty, it believes the gaming market will be reliant heavily on domestic tourism. Morgan Stanley thinks that the opening of Crown Sydney later this year will give it the edge over the competition and allow it to win market share from rivals. I think Morgan Stanley makes some very good points, but I’d rather wait and see how the company fares in the coming months before jumping in.
And here are more top shares which analysts have just given buy ratings to...
5 stocks under $5
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Cochlear Ltd. and Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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