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:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and $26.20 price target on this banking giant's shares after it announced a $528 million hit to earnings from large notable items. The broker was surprised by the additional remediation, as it thought ANZ was further along with the process. In light of these notable items, the broker has cut its final dividend forecast down to 33 cents per share. Nevertheless, it still appears to see a lot of value in its shares at the current level and retains its outperform rating. I agree that ANZ is a buy. Though, with its results being released tomorrow, it might be best to keep your powder dry until after their release.
Bravura Solutions Ltd (ASX: BVS)
Analysts at Goldman Sachs have retained their buy rating but trimmed the price target on this fintech company's shares to $4.50 following the announcement of a long term contract win and the release of an updated FY 2021 outlook. Goldman believes that Bravura's deal pipeline is strong, but fears timing delays could weigh on its earnings in the short term. In light of this, it has trimmed its earnings forecasts slightly. Nevertheless, it remains positive on the future and expects its shift to relatively more SaaS income to result in a re-rating of the stock eventually. I agree with Goldman Sachs and would be a buyer of its shares.
Cochlear Limited (ASX: COH)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $241.00 price target on this hearing solutions company's shares. The broker has undertaken industry research and surveyed audiologists with a speciality in cochlear implants. It found that demand levels have been improving and Cochlear is gaining market share. This appears to position the company to rebound strongly from the pandemic. I think Macquarie is spot on and Cochlear is a great option.
