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:
Magellan Financial Group Ltd (ASX: MFG)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted the price target on this fund manager's shares to $66.00. This follows the release of its latest monthly update which revealed a further increase in funds under management. While the broker acknowledges that its shares trade at premium, it appears to believe it deserves to and remains positive on both its flows and performance outlook. Although I think Magellan is a quality company, I would prefer to buy shares at a much lower price.
Northern Star Resources Ltd (ASX: NST)
Another note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted the price target on this gold miner's shares to $17.90. This follows its announcement of plans to merge with Saracen Mineral Holdings Limited (ASX: SAR). The broker appears pleased with the merger and notes that it offers significant synergies. I agree with Credit Suisse and feel Northern Star would be a good option if you're looking for exposure to gold.
Wesfarmers Ltd (ASX: WES)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this conglomerate's shares to an outperform rating with an improved price target of $51.00. Its analysts believe Wesfarmers is well-placed to benefit from the Federal Budget. This is particularly the case for its key Bunnings business, which looks likely to profit from increased spending on renovations and home improvements. I agree with Macquarie and would be a buyer of Wesfarmers' shares.
