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:
CSL Limited (ASX: CSL)
According to a note out of Credit Suisse, its analysts have retained their outperform rating but trimmed the price target on the biotherapeutics company's shares to $325. The broker notes that CSL is now offering upwards of US$700 per month for plasma donations in an effort to overcome the tough market conditions caused by the pandemic. This could weigh on immunoglobulin margins due to higher production costs. Nevertheless, the broker remains positive on the company's medium term growth prospects and stays firm with its outperform rating. I agree with Credit Suisse and would be a buyer of CSL's shares.
Megaport Ltd (ASX: MP1)
A note out of UBS reveals that its analysts have upgraded this leading elastic interconnection services provider's shares to a buy rating with an improved price target of $16.45. This follows the release of its first quarter update earlier this week. UBS notes that Megaport's new ports growth was strong during the three months. As this is a leading indicator of growth, it bodes well for the future. It also believes the structural shift to cloud will continue and expects Megaport to benefit from it. I think UBS is spot on and Megaport would be a good option for investors looking for exposure to the cloud.
Webjet Limited (ASX: WEB)
Another note out of UBS reveals that its analysts have retained their buy rating and $4.95 price target on this online travel agent's shares. This follows the release of a trading update at its annual general meeting. UBS is pleased with its cost cutting and believes it leaves the company well placed for profitable growth once travel markets recover. While I think UBS makes some good points, I'm not in a rush to invest just yet.
