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:
Austal Limited (ASX: ASB)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $4.35 price target on this shipbuilder's shares. The broker notes that the US Navy has released its updated long-term fleet plans. These plans include a 500 vessel fleet by 2045 and a traditional battle force fleet of 355 by 2035. Goldman believes this is a significant positive for Austal and notes its expanding total addressable market. I think Goldman makes some great points and Austal could be worth a closer look.
Coles Group Ltd (ASX: COL)
Analysts at Credit Suisse have upgraded this supermarket operator's shares to an outperform rating with an improved price target of $20.16. According to the note, the broker has lifted its earnings estimates to partly reflect improving margins. In light of this and recent share price weakness, Credit Suisse believes now is an opportune time to buy shares. I agree with the broker on this one and would be a buyer of Coles shares.
Westpac Banking Corp (ASX: WBC)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this banking giant's shares to an outperform rating with an improved price target of $18.00. While the broker acknowledges that trading conditions will remain tough in the short term, it believes this is priced into its shares. Looking further ahead, Macquarie believes Westpac's positive business mix is underappreciated by the market. I think Macquarie is spot on and Westpac would be a good option if you don't already have exposure to the banking sector.
