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:
Nick Scali Limited (ASX: NCK)
According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this furniture retailer's shares to $12.05. This follows the release of Nick Scali's half year results earlier this week. The retailer reported a half year net profit of $40.5 million, up 89.9% on the prior corresponding period. Citi was pleased with the result and expects the company to benefit from a favourable redirection of spending for the rest of the year. The Nick Scali share price is trading at $10.86 today.
Wesfarmers Ltd (ASX: WES)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this conglomerate's shares to an outperform rating with an improved price target of $60.00. According to the note, the broker believes Wesfarmers will benefit from strong consumer spending this year. It also suspects that low interest rates could give the housing market a big boost and support businesses like Bunnings, Target, and Kmart. The Wesfarmers share price is fetching $55.81 this afternoon.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgans have retained their add rating and lifted the price target on this banking giant's shares to $25.50. According to the note, the broker believes that credit impairment charges could surprise positively during earnings season. Especially given recent APRA data in relation to COVID-19 loan deferrals. Westpac is Morgans top pick in the sector and notes that its shares offer strong potential returns. It is expecting the bank to pay a $1.24 per share fully franked dividend in FY 2021. The Westpac share price is trading at $22.14 on Friday afternoon.
