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:
Baby Bunting Group Ltd (ASX: BBN)
According to a note out of Morgans its analysts have retained their add rating and $6.39 price target on this baby products retailer's shares. The broker has been looking through the retail sector and believes Baby Bunting is well-positioned for growth over the coming years. This is thanks to favourable trading conditions and its expansion opportunities. And while it shares trade at a premium, it feels its growth profile justifies this. The Baby Bunting share price is currently fetching $5.35.
Breville Group Ltd (ASX: BRG)
Analysts at Morgans have retained their add rating and $33.90 price target on this household appliance manufacturer's shares. According to the note, Breville is another retail share which the broker believes is well-placed for growth. It notes that the company is benefiting from a number of tailwinds. Furthermore, strong demand in new and existing markets looks set to bolster its growth. As will management's investment in its growth following its dividend cut. The Breville share price is currently trading at $28.16.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed the price target on this iron ore producer's shares slightly to $25.50. The broker remains positive on Fortescue due to the sky high iron ore price. It notes that the average price of the steel making ingredient so far in the second half is notably higher than the first. This positions Fortescue for a bumper second half profit and dividend payment. Looking ahead, it suspects its shares could provide double digit yields through to FY 2023. The Fortescue share price is currently fetching $22.62.
