Many of Australia’s top brokers have been busy adjusting their financial models 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:
CSL Limited (ASX: CSL)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and $333.00 price target on this biotherapeutics company’s shares. Credit Suisse expects demand for flu vaccines to grow strongly over the coming years because of the pandemic. Pleasingly, it believes CSL’s Seqirus business is well-placed to increase its market share. Particularly given the upcoming launch of its Fluad QIV vaccine. I think Credit Suisse is spot on and CSL shares would be a great option for investors right now.
Uniti Group Ltd (ASX: UWL)
Analysts at Ord Minnett have retained their buy rating but trimmed the price target on this telco’s shares to $1.94. This follows Uniti’s announcement of an improved takeover offer for fellow telco Opticomm Ltd (ASX: OPC). The broker believes that the takeover will still be highly accretive to earnings despite the revised offer. In light of this, it continues with its buy rating and sees meaningful upside from here for the Uniti share price. While it isn’t my top pick in the sector, I think it could be worth a closer look.
Wesfarmers Ltd (ASX: WES)
Another note out of Credit Suisse reveals that its analysts have upgraded this conglomerate’s shares to an outperform rating with an improved price target to $51.59. The broker made the move on the belief that demand for household goods will be stronger for longer. In addition to this, Credit Suisse notes that Wesfarmers has the option to add value through acquisitions in the near term. I agree with Credit Suisse and would be a buyer of Wesfarmers shares.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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