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:
Bravura Solutions Ltd (ASX: BVS)
According to a note out of Macquarie, its analysts have retained their outperform rating but trimmed the price target on this financial technology company's shares to $5.00. The broker made the move after Bravura revealed that its sales cycle is lengthening because of the pandemic. In light of this, management warned that its FY 2021 earnings, which it expects to be flat, will be skewed 80% to the second half. Macquarie isn't sure Bravura will deliver on its guidance and is now forecasting a 10% decline. Despite this, it remains very positive on its longer term prospects and therefore retains its outperform rating. The Bravura share price is trading at $3.39 this afternoon.
TechnologyOne Ltd (ASX: TNE)
Analysts at Morgans have retained their add rating and lifted the price target on this enterprise software company's shares to $9.99. This follows the release of the company's FY 2020 result earlier this week. Morgans notes that TechnologyOne delivered a better than expected result and its outlook for FY 2021 looks positive. The broker is expecting more strong annual recurring revenue (ARR) growth over the next 12 months. The TechnologyOne share price is changing hands for $9.02 on Wednesday.
Zip Co Ltd (ASX: Z1P)
Another note out of Morgans reveals that its analysts have retained their add rating and lifted the price target on this buy now pay later provider's shares to $9.80. The broker was impressed with Zip's trading update and notes that October was another record month. Morgans was also pleased with the performance of its US business, which saw its growth accelerate last month. The Zip Co share price is currently fetching $5.97.
