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:
Afterpay Ltd (ASX: APT)
According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted the price target on this payments company's shares to $115.00. This follows the release of a first quarter update that impressed the broker. This was particularly the case with its increasing customer frequency and sales per active customer. Looking ahead, the broker believes Afterpay is well-placed going into the all-important holiday season. I agree with Ord Minnett and would be a buyer of Afterpay's shares.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Citi have retained their buy rating and $18.50 price target on this iron ore producer's shares following its first quarter update. According to the note, Fortescue's shipments were in line with its expectations, but its costs were better than forecast. It believes this leaves Fortescue perfectly placed to reward shareholders with generous dividends this year. So much so, it suspects it could provide a double-digit yield in FY 2021. I think Citi is spot on and Fortescue is a great option for income investors.
JB Hi-Fi Limited (ASX: JBH)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this retailer's shares to $54.90. This follows the release of its first quarter sales update. Macquarie suspects that JB Hi-Fi will benefit from consumers spending more instead of travelling overseas. In addition to this, it notes that the holiday season should be a strong one. Particularly given the release of a new iPhone and PlayStation 5. While it isn't my favourite retail option, I think Macquarie makes some great points and it could be worth considering.
