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:
Nextdc Ltd (ASX: NXT)
According to a note out of Citi, its analysts have retained their buy rating but trimmed the price target on this data centre operator's shares slightly to $14.45. The broker was pleased with NEXTDC's half year results last month. Looking ahead, Citi notes that a good portion of its future earnings are already contracted. Furthermore, with the shift to the cloud accelerating, demand looks set to continue to grow in the coming years. The NEXTDC share price is fetching $10.51 on Friday afternoon.
Wesfarmers Ltd (ASX: WES)
A note out of Macquarie reveals that its analysts have retained their outperform rating but cut the price target on this conglomerate's shares to $56.60. The broker has been looking at recent sales data and notes that the household goods sector continues to perform very strongly. In addition to this, the broker points out that with household savings at a record high, strong retail spending should be sustainable over the medium term. The Wesfarmers share price is trading at $49.45.
Westpac Banking Corp (ASX: WBC)
Analysts at Citi have also retained their buy rating and $26.00 price target on this banking giant's shares. According to the note, after speaking with management, the broker believes Westpac's Institutional Bank business is well-placed to overcome cost pressures and a moderation in volumes thanks to its asset quality. Outside this, the broker is positive on the company due to its balance sheet and expects this to underpin solid returns in the future. The Westpac share price is trading at $24.73 on Friday afternoon.
