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:
Galaxy Resources Limited (ASX: GXY)
According to a note out of Ord Minnett, its analysts have upgraded this lithium miner's shares to a buy rating and increased the price target on them to $3.70. The broker made the move in response to a recovery in demand for lithium and stronger prices. In addition, it notes that the Galaxy share price has pulled back a touch, bringing it down to an attractive level for investors. The Galaxy share price ended the week at $2.71.
Telstra Corporation Ltd (ASX: TLS)
A note out of Morgan Stanley reveals that its analysts have upgraded this telco giant's shares to an overweight rating with an improved price target of $4.00. According to the note, the broker is a fan of Telstra's plan to split into three separate businesses. The broker expects the spin-off of its Tower to be a near term catalyst for its shares and sees other options to create value in the future. In light of this, Morgan Stanley is now confident that its dividend is sustainable at 16 cents per share for the foreseeable future. The Telstra share price was fetching $3.40 at Friday's close.
Westpac Banking Corp (ASX: WBC)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $27.20 price target on this banking giant's shares. Morgan Stanley has been looking at industry data and believes Westpac is well-placed for growth in the near term. It also estimates that the bank is outperforming its estimates when it comes to home loan growth. In light of this, it sees a lot of value in its shares at the current level. The Westpac share price ended the shortened week at $24.54.
