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 Morgan Stanley, its analysts have retained their overweight rating and $101.00 price target on this payments company's shares. This follows Afterpay's announcement of an agreement with Apple Pay and Google Pay for in-store payments in the United States. Morgan Stanley expects this to accelerate adoption and protect its first mover advantage in the rapidly growing buy now pay later market. I agree with Morgan Stanley and feel Afterpay would be a great buy and hold option.
BWX Ltd (ASX: BWX)
Analysts at Citi have retained their buy rating and $4.20 price target on this personal care products company's shares following its equity raising and trading update. In respect to the latter, Citi notes that the company behind the Sukin brand delivered stronger than expected revenue and earnings growth in FY 2020. It also believes that management's guidance for FY 2021 is conservative and suspects stronger growth could be achieved. I was impressed with BWX's turnaround and feel it could be worth a closer look.
TPG Telecom Ltd (ASX: TPG)
A note out of Morgans reveals that its analysts have initiated coverage on the newly merged telco with an add rating and $9.12 price target. The broker notes that it has a strong position in the market with a number of popular brands. It appears to believe the combination of TPG Telecom and Vodafone Australia is a good one and is positive on its outlook. While not my top pick in the sector, I do think it could be worth considering.
