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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their buy rating and $21.50 price target on this fresh milk and infant formula company's shares. The broker believes that a2 Milk performed strongly during the 18 June Mid-Year Shopping Festival in China. It expects this to have helped shift any excess inventory. I agree with Citi on a2 Milk and would be a buyer of its shares. Especially now it appears to be planning to put its sizeable cash balance to work with new product launches or acquisitions.
CSL Limited (ASX: CSL)
Analyst at UBS have retained their buy rating and $335 price target on this biotherapeutics company's shares following its acquisition of uniQure's AMT-061 gene therapy. UBS appears supportive of the acquisition. And while it notes that it is likely to cannibalise the sales of its current haemophilia B therapy (Idelvion) in the future, it doesn't expect it to be used in children. This could mean both therapies have a place in the market. I agree with UBS and feel CSL would be a great long term investment option.
Qantas Airways Limited (ASX: QAN)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on the airline's shares to $5.30. The broker appears pleased with its decision to raise capital to create an extra financial buffer over the medium term and support its cost cutting plans. And although it doesn't expect the airline to be profitable again until FY 2022, it still believes it is a buy today. I think Qantas could prove to be a good investment option if domestic tourism markets recovery in 2021.
