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 200 shares are in the buy zone:
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Lendlease Group (ASX: LLC)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating on this international property and infrastructure company's shares and put a $16.55 price target on them. Although Goldman was disappointed to see that Lendlease's net profit after tax will fall well short of expectations in FY 2020, it believes the company's profits will bounce back strongly in FY 2021. So much so, it estimates that the Lendlease share price is trading at just 11x FY 2021 earnings. I agree with Goldman Sachs and would be a buyer of its shares.
Telstra Corporation Ltd (ASX: TLS)
Analysts at UBS have retained their buy rating and $3.70 price target on this telco giant's shares. According to the note, the broker expects Telstra's mobile business to deliver solid EBITDA growth over the coming years. This follows its recently announced mobile plan changes. In light of this, it believes Telstra will be able to maintain its dividend at 16 cents per share until at least FY 2023. I think UBS is spot on and believe Telstra shares would be a great option for income investors.
Webjet Limited (ASX: WEB)
Another note out of UBS reveals that its analysts have retained their buy rating and lifted the price target on this online travel agent's shares to $5.35. The broker believes Webjet's outlook has improved greatly in recent months and has been factoring this and potential market share gains into its estimates. However, given the uncertainty in the travel market, it has warned that its shares are likely to remain volatile in the near term. Although I'm a fan of the company, I'm not convinced that the Webjet share price represents good value just yet. As a result, I intend to wait to see how its performance fares in FY 2021 before considering an investment.
