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:
Altium Limited (ASX: ALU)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $40.00 price target on this electronic design software company's shares. Morgan Stanley notes that Altium expects to fall short of the market's revenue expectations (US$192 million) in FY 2020 because of the pandemic's impact on sales this month. While this is disappointing, the broker believes that investors should be focusing on its very positive long term outlook. I agree with Morgan Stanley and feel it is well worth sticking with Altium.
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
Analysts at Morgans have retained their add rating and lifted the price target on this banking giant's shares to $21.00. According to the note, the broker believes the bad debt damage being factored into its share price is overdone. It doesn't expect the bad debt experience from the current crisis to be as bad as the global financial crisis because of central bank and Federal Government action. I agree with Morgans and think ANZ is a good option for investors right now.
Woolworths Group Ltd (ASX: WOW)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this conglomerate's shares to $40.50. The broker made the move after Woolworths released a trading update which revealed strong sales growth for its Food, Liquor, and Big W businesses. And while its Hotels business continues to weigh on its performance, the broker is optimistic this headwind will start to ease now that venues are reopening. I think Macquarie makes some great points and Woolworths could be a blue chip to buy.
