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:
Catapult Group International Ltd (ASX: CAT)
According to a note out of Morgans, its analysts have retained their add rating and lifted the price target on this sports analytics and wearables company's shares to $2.44. Morgans was pleased with Catapult's performance in FY 2020 and particularly its positive free cashflow. It was also happy with its low levels of churn during the pandemic and sees a long runway for growth ahead of the company. I think Morgans makes some good points and Catapult would be worth a closer look.
IDP Education Ltd (ASX: IEL)
A note out of UBS reveals that its analysts have retained their buy rating and lifted the price target on this student placement and language testing company's shares to $21.00. The broker notes that IDP delivered a stronger than expected result in FY 2020 thanks largely to its excellent cost control. It also notes that demand for its services remains strong and expects the company to come out of the crisis in an even stronger market position. I agree with UBS and would be a buyer of IDP Education's shares.
Pro Medicus Limited (ASX: PME)
Another note out of UBS reveals that its analysts have upgraded this health imaging software company's shares to a buy rating with a $29.65 price target. UBS was pleased with its better than expected performance in FY 2020 and expects another strong year ahead. Especially given how its sales pipeline continued to grow even during the pandemic. I would have to agree with the broker on this one as well. I think Pro Medicus could be a great buy and hold option.
