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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $30.00 price target on this gaming technology company's shares. The broker notes that Aristocrat Leisure's digital business is performing a lot better than it expected. This is particularly the case with its Raid: Shadow Legends game, which it believes is generating material revenues. This is good news given the tough trading conditions its pokie machine businesses are facing. I agree with Morgan Stanley and see value in the Aristocrat Leisure share price.
CSL Limited (ASX: CSL)
A note out of UBS reveals that its analysts have retained their buy rating on this biotherapeutics company's shares but trimmed the price target on them slightly to $331.00. UBS believes that a spike in coronavirus cases in the United States will weigh on its plasma collections in the near term. While this will create headwinds, it appears confident that other areas of the business will offset this and support earnings growth in FY 2021. I think UBS is spot on and I would buy CSL shares today.
Vocus Group Ltd (ASX: VOC)
Another note out of UBS reveals that its analysts have upgraded this telecommunications company's shares to a buy rating with a $3.60 price target. UBS made the move on valuation grounds after the Vocus share price underperformed over recent months. It sees a lot of value in its shares at the current level, even after lowering its earnings estimates slightly to reflect higher costs. While I think UBS makes some fair points, Vocus wouldn't be my top pick in the telco sector right now.
