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:
Breville Group Ltd (ASX: BRG)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $29.00 price target on this appliance manufacturer's shares. This follows the release of its annual general meeting update which included guidance for FY 2021. Breville expects earnings before interest and tax (EBIT) of $128 million to $132 million. Morgan Stanley believes this guidance could prove to be conservative. The Breville share price is trading at $26.03 this afternoon.
InvoCare Limited (ASX: IVC)
A note out of Morgans reveals that its analysts have retained their add rating and increased their price target on this funerals company's shares to $13.00. The broker made the move after InvoCare announced the acquisition of Family Pet Care and Pets in Peace for a combined price of $49.8 million. Morgans expects the acquisitions to be accretive to earnings in FY 2021. Outside this, it feels the recent easing of COVID restrictions will be a boost to its core business. The InvoCare share price is changing hands for $11.56 today.
Telstra Corporation Ltd (ASX: TLS)
Analysts at UBS have retained their buy rating and $3.70 price target on this telco giant's shares. This follows an announcement by the company which revealed plans to split into three separate entities. The broker believes this plan will crystallise value for shareholders. In addition to this, the broker sees 5G internet as a major opportunity for Telstra and expects the company to pay a 16 cents per share dividend in FY 2021. The Telstra share price is trading at $3.12 on Friday afternoon.
