Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.
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:
Accent Group Ltd (ASX: AX1)
According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this footwear retailer’s shares to $2.60. The broker lifted its price target after upgrading its earnings estimates to account for Accent’s positive trading update. The broker believes there could be more of the same in the future and suspects that its stronger profit margins could be sustained. The Accent share price was trading at $2.44 on Friday.
ARB Corporation Limited (ASX: ARB)
Another note out of Citi reveals that its analysts have upgraded this 4×4 parts company’s shares to a buy rating with a $34.25 price target. The broker made the move on the belief that ARB will benefit from robust car sales in Australia. In addition to this, the recent strengthening of the Australian dollar bodes well for its manufacturing costs in Thailand. The ARB share price ended the week at $31.37.
Atomos Ltd (ASX: AMS)
Analysts at Morgans have retained their add rating and $1.32 price target on this video technology company’s shares following its trading update. According to the note, the broker was pleased with its better than expected sales during the first half. Atomos reported sales of $32.6 million, compared to prior guidance of $28 million. And while it notes that management didn’t provide any earnings guidance, it did say that it expects to generate positive operating earnings for the first half. The Atomos share price ended the week at $1.04.