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:
BWX Ltd (ASX: BWX)
According to a note out of Citi, its analysts have retained their buy rating and $5.35 price target on this personal care products company’s shares. The broker notes that Chinese authorities have now removed the animal testing requirement for imported cosmetics. Citi sees this as a big positive for BWX and its Sukin brand as it was previously unable to sell its products in retail stores on mainland China. In addition to this, it is positive on the company due to its sizeable opportunities in existing markets. The BWX share price is fetching $4.76 this afternoon.
Carsales.Com Ltd (ASX: CAR)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $23.00 price target on this auto listings company’s shares. According to the note, industry data shows that new car sales volumes have now turned positive. Morgan Stanley feels this bodes well for the company’s online display advertising business and expects it to boost its revenue in the second half and beyond. The Carsales share price is trading at $18.39 on Wednesday.
CSL Limited (ASX: CSL)
Another note out of Citi reveals that its analysts have upgraded this biotherapeutics company’s shares to a buy rating with a $310.00 price target. The broker made the move largely on valuation grounds after a significant pullback in the CSL share price over the last few months. In addition to this, Citi is optimistic that plasma collection headwinds will now ease following the rollout of COVID-19 vaccines in the United States. The CSL share price is trading at $254.89 this afternoon.