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:
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A2 Milk Company Ltd (ASX: A2M)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating but cut the price target on this infant formula company's shares to $17.95. The broker notes that the pandemic's impact on the daigou channel has been much more severe than expected. While this is disappointing, the broker appears to believe it is a short term headwind and remains positive on its long term growth potential. I would agree that a2 Milk Company's shares are a buy at the current level.
Corporate Travel Management Ltd (ASX: CTD)
Another note out of Macquarie reveals that its analysts have upgraded this corporate travel specialist's shares to an outperform rating with an improved price target of $16.40. This follows the company's announcement of an equity raising to fund the acquisition of Travel & Transport. Macquarie believes this is a good acquisition and notes that it will increase its scale in the lucrative United States market. I think Macquarie is spot on and Corporate Travel Management could be worth considering.
Moneyme Ltd (ASX: MME)
Analysts at Ord Minnett have retained their buy rating and $1.92 price target on this digital consumer credit company's shares. This follows the announcement of a new $167 million warehouse funding facility. Ord Minnett notes that this has reduced its funding costs materially and expects the company to leverage this to grow its market share in new and existing verticals. I think Ord Minnett makes some good points and it could be worth a closer look.
