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:
Afterpay Ltd (ASX: APT)
According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted their price target materially on this payments company's shares to $64.70. The broker has been looking through recent data and has made positive revisions. It now believes Afterpay could report almost 10 million active customers by the end of FY 2020. This will be more than double the 4.6 million active customers it had at the end of FY 2019. While it is a high risk option due to its valuation, I agree that Afterpay is a buy.
SEEK Limited (ASX: SEK)
A note out of UBS reveals that its analysts have upgraded this job listings company's shares to a buy rating with a $23.00 price target. UBS made the move on the belief that the worst is now behind the company and that job volumes have started their recovery. The broker also notes that SEEK's shares look good value in comparison to other online listings companies. I agree with UBS and feel SEEK would be a great buy and hold investment.
Woodside Petroleum Limited (ASX: WPL)
Analysts at Goldman Sachs have reaffirmed their buy rating and $33.85 price target on this energy producer's shares. According to the note, the broker believes that Woodside is well-positioned in this low oil price environment due to its low cost operations and its strong balance sheet. Based on its last close price, Goldman's price target implies potential upside of 55.6% for its shares over the next 12 months. I think this could certainly make it worth considering.
